Gold slips from over 8-month high as Biden-Putin meeting plans ease demand

Gold prices fell from a more than eight-month high hit earlier on Monday, as safe-haven demand eased after the U.S. president agreed to meet his Russian counterpart over the Ukraine crisis.

Spot gold fell 0.2% to $1,893.80 per ounce by 0139 GMT, retreating from $1,908.02 — its highest since June 3 hit earlier in the session. U.S. gold futures were steady at $1,898.60.

U.S. President Joe Biden has accepted in principle a summit with Russia’s Vladimir Putin over the Ukraine crisis after the two countries’ foreign ministers meet next week and if an invasion has not occurred, the White House said on Sunday.

Russia will extend military drills in Belarus that were due to end on Sunday, the Belarusian defense ministry announced, adding to mounting tensions as satellite images appeared to show new deployments of Russian armor and troops close to Ukraine.

A potential invasion of Ukraine by neighboring Russia would be felt across a number of markets, from wheat and energy prices and the region’s sovereign dollar bonds to safe-haven assets and stock markets.

Elsewhere, Japan’s manufacturing activity expanded at the slowest pace in five months in February as output contracted.

Buyers in major Asian hubs put off physical gold purchases last week due to a rally in prices on escalating Russia-Ukraine tensions, pushing Indian dealers to offer the highest discounts in nearly seven months.

Spot silver fell 0.7% to $23.79 per ounce, platinum rose 0.3% to $1,070.29 and palladium was flat at $2,346.80.