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Gold Price Forecast: XAU/USD holds below $3,350 ahead of US-Ukraine talks
Monday, 18 August 2025 07:17 WIB | GOLD |GOLD

The Gold price (XAU/USD) attracts some sellers to around $3,330 during the early Asian session on Monday. The precious metal edges lower after unexpectedly strong US Producer Price Index (PPI) data. Investors will closely monitor a meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy later on Monday for further developments.

Hotter-than-expected PPI inflation data released on Thursday prompted traders to trim wagers on rate cuts by the Federal Reserve (Fed) in September, which creates a headwind for the yellow metal. The US Producer Price Index (PPI) rose 3.3% YoY in July, versus the 2.4% increase prior. This reading came in stronger than the expectations of 2.5% by a wide margin.

Furthermore, data released by the US Census Bureau on Friday showed that the US Retail Sales increased by 0.5%  MoM in July, versus a rise of 0.9% seen in June (revised from 0.6%). This reading came in line with the market consensus. 

However, the cautious mood in the market might boost the safe-haven flows and help limit gold's losses. Bloomberg reported on Sunday that US special envoy Steve Witkoff said that Trump and Russian President Vladimir Putin agreed on Ukraine security pledges.

Witkoff further stated that the deal did not enable Ukraine to achieve its goal of NATO membership, as Russia objected to NATO admission. Gold traders will take more cues from the Trump and Zelenskiy meeting later in the day as details from the US-Russia talks remain unclear. 

Source: FXstreet

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