HSBC-Precious Metals Daily Gold dips as focus flips to Washington；can ease further-20250818

Market focus, emerging trends

Gold moved slightly higher in Asian and London hours, largely as a result of the lackof progress at the Alaska summit between Presidents Trump and Putin, as themeeting ended with no agreement regarding a ceasefire, but also no furtherimposition of tariffs. As a result, gold traded quietly in a narrow range, with declinesmet by China bank buying. There were no signs of any central bank activity, but theEFPs widened. Silver also traded in a narrow range. The PGMs were very quietahead of the US opening.

Gold initially traded higher in US action. The USD and yields inched higher, whichhelped curb and finally reverse gold’s modest rally. The focus remained ongeopolitics, specifically Ukraine, as European leaders and Ukrainian Prime MinisterZelensky arrived in Washington for talks following the Alaska summit. The goldmarket was caught in a “no-man’s land” after the summit yielded neither a ceasefire,which presumably would have sent gold lower, nor threatened new tariffs, whichwould have likely rallied bullion. The initial lack of direction due to the stasis inUkraine developments left gold rangebound until later. According to the FT, PresidentTrump floated US security guarantees in his meeting with President Zelensky and thepromise of a three-way meeting with President Putin. Gold remained on thedefensive. Silver remained subdued, while Palladium rallied.