Gold is trading down more than 1% at the start of the European session today, Monday, August 11, the opening session of the week, influenced by increased risk appetite in the markets and optimism regarding the Russian-Ukrainian war after media reports that President Donald Trump will meet with President Putin next week to negotiate an end to the war. Amid anticipation of US inflation figures on Tuesday, the yellow metal is trading down approximately 1.14% at $3,359 per ounce, while silver is trading at $37.67 per ounce, down 1.71%.

The easing of geopolitical tensions related to the Russian-Ukrainian war or trade policies, along with expectations of an extension of the deadline for the tariff truce between Washington and Beijing, which expires tomorrow, Tuesday, August 12, are all factors that negatively impact gold trading and support gains in currencies and high-risk assets.

Markets are awaiting inflation figures, represented by the Consumer Price Index (CPI) for July, on Tuesday evening. Expectations indicate a 0.3% monthly increase in July, following a 0.2% increase in June, and an increase to 2.8% year-on-year, up from 2.7% in June. Markets will closely monitor these figures due to their importance and impact on the Federal Reserve’s monetary policy in the coming period, although they will not have a significant impact on the Fed’s decision at its September meeting. According to the CME’s FedWatch tool, markets are currently pricing in a near-90% probability of a 25 basis point rate cut at the September meeting.

Platinum, meanwhile, is trading at $1,302, down approximately 2.22%, while palladium is down approximately 1.14%, trading at $1,113.