Gold Faces Volatility Amid Geopolitical Shifts and US Economic Data

Gold prices experienced significant turbulence this week, shedding 1.5% on Monday as easing tensions between Russia and Ukraine dampened safe-haven demand. The prospect of diplomatic talks between Presidents TRUMP and Putin fueled risk appetite across markets.

The commodity found temporary support NEAR $3,350 following mixed US inflation data. July's CPI held steady at 2.7% annually, reinforcing expectations of potential Federal Reserve rate cuts. Treasury yields retreated as traders priced in a more dovish monetary policy outlook.

Market attention now turns to upcoming US activity data and Fed commentary, which could determine gold's near-term trajectory. The metal's traditional role as an inflation hedge continues to battle against shifting risk sentiment in global markets.