Spot Gold pulled back from last week’s all-time high of $4,549.71/oz. on Monday, as investors likely took profits following the recent rally and after seemingly productive talks between Donald Trump and Volodymyr Zelenskiy on a potential peace deal.
US President Trump said over the weekend that he and Ukrainian President Zelenskiy were “getting a lot closer, maybe very close” to an agreement to put an end to the war in Ukraine.
Trump also said he was open to addressing Ukraine’s parliament, holding trilateral talks with Zelenskiy and Putin as well as meeting European leaders in January.
A combination of strong central bank buying, US tariff policies, potential rate cuts by the Federal Reserve, robust ETF inflows and geopolitical uncertainty has fueled Gold’s rally to a series of record highs this year.
Market participants have increasingly factored in a faster pace of policy easing by the Federal Reserve in 2026, as US inflation has shown signs of moderation.
FOMC policy makers signaled just one 25 bps rate cut for next year, while investors continue to expect two rate cuts of 25 basis points each.
Meanwhile, central banks are set to buy 850 tons of gold in 2025, compared to 1,089 tons in 2024, according to Metals Focus.
And, physically-backed gold ETFs are on track for their most sizable inflow since 2020, attracting $82 billion so far in 2025, according to World Gold Council data.
Spot Gold was last down 1.27% on the day to trade at $4,475.63 per troy ounce.
Year-to-date, the yellow metal has surged 70.55%, set to register its best annual performance since 1979.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
