Gold Trims Loss After Ukraine Rejects Parts of US-Russian Plan
(Bloomberg) — Gold trimmed losses after Kyiv and European allies rejected key parts of a US-Russian plan to end the war in Ukraine.
Bullion traded near $4,060 an ounce, headed for a slight weekly loss following a selloff in equities and cryptocurrencies, and a US jobs report that clouded the outlook for another Federal Reserve rate cut in December.
The leaders of Germany, France and the UK agreed on a call with Ukraine’s Volodymyr Zelenskiy that Kyiv’s armed forces must remain capable of defending its sovereignty. The US threatened to cease provision of intelligence and weapons to Ukraine to press it to agree to the framework of a US-brokered peace deal with Russia, Reuters said. Geopolitical uncertainties boost the appeal of gold as a haven asset.
The tensions capped a tumultuous week in financial markets, with the S&P 500 sinking to its lowest level in more than two months on Thursday, while Bitcoin extended a precipitous decline, amid nervousness about valuations of US tech stocks. Gold can sometimes suffer in equity downturns, as traders sell to meet margin payments.
Meanwhile, the last labor report that the Federal Reserve will see before its Dec. 9-10 meeting showed that US jobs growth beat expectations in September, although unemployment marched higher.
The jobs report has “something for everyone, with both hawks and doves able to move back into their corners,” TD Securities analysts including Oscar Munoz said in a note.
The minutes of the Federal Open Market Committee’s last meeting in October, released on Wednesday, showed many Fed officials are leaning toward keeping interest rates steady. Swap traders see only a 40% chance of a reduction next month, having backed a quarter-point cut just two weeks ago. Bullion typically underperforms when rates are higher.
Despite its pullback from a record high last month, gold has gained more than 50% this year and remains on course for its best annual performance since 1979. A scorching rally has been supported by inflows to exchange-traded funds, and central bank purchases. Many analysts saw the more rapid gains chalked up in the second half of the year as overstretched, as a “debasement trade” narrative about a retreat from sovereign debt and currencies took hold.
Gold fell 0.4% to $4,062.89 an ounce at 1:03 p.m. in London. The Bloomberg Dollar Spot Index was steady. Silver declined more than 2%, while palladium was also lower. Platinum edged up.
–With assistance from Preeti Soni.
©2025 Bloomberg L.P.
