Gold Price Forecast: XAU/USD trades cautiously around $3,340 ahead of Trump-Putin meet

• Gold price consolidates around $3,340 as investors await a meeting between US President Trump and Russian leader Putin.
• US Trump hinted that Russia's Putin might agree to end the war in Ukraine.
• Traders remain confident that the Fed will reduce interest rates in September.

Gold price (XAU/USD) trades with caution around $3,340 during the European trading session on Friday. The precious metal trades in a limited range as investors await the meeting outcome between United States (US) President Donald Trump and Russian leader Vladimir Putin, which is scheduled for Friday in Alaska.

Investors will pay close attention to the Trump-Putin meeting as both will discuss ending the war in Ukraine. Theoretically, easing geopolitical tensions weigh on demand for safe-haven assets, such as Gold.

The comments from US President Trump in an interview with Fox News, expressed confidence that Russian leader Putin would agree to stop war in Ukraine. "I think he's going to make a deal, Trump said and added that he would then call Ukrainian President Volodymyr Zelenskiy and his European allies to schedule a meeting for further talks.

Meanwhile, firm market expectations that the Federal Reserve (Fed) will cut interest rates in the September policy meeting continue to support the Gold price. According to the CME FedWatch tool, the probability of the Fed cutting interest rates in September is 92.6%.

The scenario of lower interest rates by the Fed bodes well for non-yielding assets, such as Gold.

Fed's interest rate cut expectations remain healthy even as the US Producer Price Index (PPI) report for July has signaled that business owners have started passing the impact of tariffs to consumers. Both headline and the core PPI rose by 0.9% on a month.

Gold technical analysis

Gold price trades in a Symmetrical Triangle, which indicates a sharp volatility contraction. The upper border of the above-mentioned chart pattern is plotted from the April 22 high around $3,500, while the downward border is placed from the May 15 low near $3,180.86.

The yellow metal wobbles near the 20-day Exponential Moving Average (EMA) around $3,351.00, indicating a sideways trend.

The 14-day Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, suggesting indecisiveness among market participants.

Looking down, the Gold price would fall towards the round-level support of $3,200 and the May 15 low at $3,121, if it breaks below the May 29 low of $3,245.

Alternatively, the Gold price will enter uncharted territory if it breaks above the psychological level of $3,500 decisively. Potential resistances would be $3,550 and $3,600.

Gold daily chart