Gold prices were little changed as traders assessed U.S. efforts to end the military conflict in Ukraine while counting down to the Federal Reserve's annual meeting in Jackson Hole.
Investors are cautiously optimistic about diplomatic initiatives aimed at resolving the crisis, although the actual impact of these efforts on geopolitical stability—and consequently on the value of precious metals—remains uncertain.
Spot gold held steady below 3,336 per ounce despite the Trump administration's coordinated diplomatic efforts to mediate an end to the conflict in Ukraine. President Donald Trump called Vladimir Putin and urged the Russian leader to discuss the possibility of a summit with Volodymyr Zelensky after meeting with the Ukrainian president and European leaders at the White House on Monday.
Market attention is now focused on the upcoming Jackson Hole symposium, where Fed Chair Jerome Powell is expected to deliver remarks on the outlook for monetary policy. Given persistent inflation and a weakening labor market, participants will be closely watching for hints of further interest rate cuts. On the other hand, a more aggressive Fed stance aimed at containing inflation could put pressure on gold, as higher rates raise the opportunity cost of holding a non-yielding asset.
Technical analysis indicates that gold is trading within a narrow range, reflecting market indecision. Support and resistance levels remain key areas to watch. Traders are also closely monitoring the U.S. dollar's moves, as a stronger currency typically exerts downward pressure on dollar-denominated gold prices.
In recent months, gold has mostly traded in a tight range after setting a record just above 3,500 per ounce in April. This year, the commodity remains up 27%, supported by central bank purchases and a significant inflow into gold-backed exchange-traded funds. Signs of a potential U.S. economic slowdown and ongoing geopolitical tensions have also contributed to the metal's strength.
As for the current technical picture of gold, buyers need to reclaim the nearest resistance at 3,370. This would allow them to target 3,400, although breaking higher will be quite challenging. The furthest target stands at 3,440. In the event of a decline, bears will attempt to take control at 3,335. If they succeed, a breakout of the range would deal a serious blow to bullish positions and push gold down to the 3,313-low, with the prospect of reaching 3,291.
