Gold Prices Dip Amid Russia-Ukraine Ceasefire Talks and Stronger Dollar

Gold prices slipped on Tuesday as a slightly stronger U.S. dollar and optimism surrounding potential ceasefire talks between Russia and Ukraine reduced investor demand for safe-haven assets.

Spot gold fell 0.5% to $3,213.35 an ounce as of 0427 GMT, while U.S. gold futures declined 0.6% to $3,215.50.

The dollar rebounded slightly after hitting a more than one-week low in the previous session, making gold—which is priced in dollars—less attractive to investors holding other currencies.

"We are seeing the knee-jerk response to the U.S. credit downgrade wear off and there's some hope of a truce between Ukraine and Russia," said Kyle Rodda, financial market analyst at Capital.com.

U.S. President Donald Trump said Monday he spoke with Russian President Vladimir Putin, and that Russia and Ukraine would begin immediate ceasefire negotiations.

"We are seeing buyers emerge on dips below $3,200. However, I think we are due a bigger pullback, especially if there's further easing in geopolitical risks and we see upward pressure on yields building from U.S. fiscal policy," Rodda added.

Gold has gained about 22% year-to-date, hitting several record highs in 2025 amid global economic and geopolitical uncertainty.

Meanwhile, U.S. Federal Reserve officials adopted a cautious tone Monday regarding the recent U.S. credit rating downgrade and ongoing market volatility, as they navigate a murky economic outlook.

Moody’s downgraded the U.S. credit rating to "Aa1" from "Aaa" on Friday, citing rising national debt and interest costs "significantly higher than similarly rated sovereigns."

Several Fed officials are set to speak later Tuesday, with markets looking for further signals on interest rate policy. Currently, markets are pricing in at least 54 basis points of rate cuts this year, with the first expected in October.

Other precious metals also declined:

• Silver fell 0.6% to $32.17 an ounce

• Platinum held steady at $998.04

• Palladium dropped 0.3% to $971.84

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