Gold strengthened as traders monitored US-led efforts to end the war in Ukraine and counted down to the Federal Reserve's annual meeting in Jackson Hole, which may yield hints about a possible interest rate cut.

Spot gold prices edged up to $3,345 an ounce, after ending nearly flat on Monday. Fed Chairman Jerome Powell is scheduled to deliver a keynote address at a meeting of central bankers on Friday, and his remarks could reinforce widespread investor expectations for looser monetary policy. Lower borrowing costs typically benefit precious metals, a non-yielding asset.

Meanwhile, the US has made a concerted diplomatic effort to broker an end to the conflict in Ukraine. President Donald Trump called Vladimir Putin and urged the Russian leader to schedule a summit with Volodymyr Zelenskiy, after meeting with the Ukrainian president along with European leaders at the White House on Monday.

Gold has largely traded in a narrow range in recent months, after hitting a record just above $3,500 an ounce in April. The commodity—still up 27% this year—has been supported by central bank buying and solid inflows into bullion-backed exchange-traded funds (ETFs). Signs that the US economy may be easing and geopolitical tensions have also helped the price of the precious metal.

Spot gold edged up 0.3% to $3,343.38 an ounce at 12:14 p.m. in London. The Bloomberg Dollar Spot Index traded slightly lower. Silver was little changed, while platinum and palladium both rose more than 1%. (alg)

Source: Bloomberg