Gold prices fell slightly on Monday, returning below $4,500 per ounce, retreating slightly from record levels. This decline is considered normal, as some market participants are taking profits after a long rally.

In addition to profit-taking, the market is also digesting the latest geopolitical developments. US President Donald Trump said peace talks with Ukrainian President Volodymyr Zelenskiy have made "a lot of progress," but he believes an agreement could still take several weeks.

Trump also said he is open to speaking in the Ukrainian parliament if necessary, is considering three-way talks with Zelenskiy and Russian President Vladimir Putin, and plans to meet with European leaders in January. These statements contribute to shaping market expectations regarding the direction of the conflict and geopolitical risks.

On the Ukrainian side, Zelenskiy stated that the peace framework is 90% agreed upon and that US-Ukrainian security guarantees are fully in place, although he emphasized that there are still important outstanding issues. This means that uncertainty remains despite the more positive tone of diplomacy. On a year-to-date basis, gold continues to deliver exceptional performance: its price has risen more than 70% so far this year and is on track for its strongest annual gain since 1979. The rally is being supported by central bank buying, continued ETF inflows, persistent geopolitical risks, and the Fed's interest rate cuts—with the market also starting to price in the possibility of further policy easing next year. (asd)

Source: Newsmaker.id