Oil and gold prices rose on Monday as investors looked to a high-stakes Washington meeting between President Trump, Ukrainian President Volodymyr Zelenskyy and European leaders. The gathering, expected to touch on energy and security, has sharpened market attention on geopolitical risks and future monetary policy signals.
Gold rebounded from a two-week low, climbing 0.4 percent to $3,348.59 an ounce. Futures for December delivery also gained, rising to $3,394.90. Analysts linked the move to falling U.S. Treasury yields, which reduce the opportunity cost of holding gold, and to investors seeking security ahead of geopolitical talks.
Oil prices also firmed, with Brent crude trading at $65.79 per barrel and West Texas Intermediate near $62.82. The recovery followed last week’s pullback, as markets grew more confident that U.S. sanctions on Russian oil buyers would not be tightened immediately after talks between Presidents Trump and Putin.
Luke Sadrian, chief investment officer at Commodities World Capital, told Reuters: “The market is cautious. Traders don’t expect major breakthroughs from Washington, but any easing of tensions can remove risk premiums priced into energy contracts.”
The context is a delicate one for oil markets. Russian supply flows have been reshaped since the onset of the Ukraine conflict, with a growing share moving toward Asia. While sanctions have restricted European imports, ongoing diplomacy has led investors to anticipate some flexibility in enforcement, reducing immediate fears of supply disruption.
Market analysts warn, however, that political gestures may not translate into policy shifts. A MarketWatch analysis noted that “no summit can act as a magic lever to instantly boost supply,” underscoring that infrastructure and production capacity constraints remain significant.
For gold, the immediate driver has been softer yields. Benchmark 10-year U.S. Treasuries edged lower, reinforcing expectations that the Federal Reserve may consider rate cuts later this year. A more dovish stance would make non-yielding assets like gold more attractive, extending recent inflows from institutional investors.
Investors are also awaiting the annual Jackson Hole symposium, where central bankers, including Federal Reserve Chair Jay Powell and Bank of England Governor Andrew Bailey, will outline their policy outlooks. Any signal of extended monetary easing could add momentum to both commodities, with gold gaining from yield compression and oil benefiting from stronger demand expectations.
With geopolitical risks still elevated and monetary policy entering a sensitive phase, traders remain hedged. The measured rise in oil and gold suggests markets are balancing optimism with caution, prepared for both breakthroughs and setbacks as the week’s events unfold.
