Oil and gold rise before crucial talks in Washington

Asian stocks rise while European shares slip as investors await a high-stakes meeting in Washington.

Oil and gold rise as Zelenskyy Trump talks loom in Washington

Oil and gold both edged higher ahead of a key meeting in Washington that will bring Zelenskyy and Trump into the same room with European leaders, keeping energy markets on edge. Brent crude drifted higher and gold prices firmed as traders prepared for policy signals that could shape how the West responds to the war in Ukraine and the broader threat environment. The day’s commentary also referenced a pointed op ed by a White House adviser urging India to curb its purchases of Russian crude, linking energy trade to the funding of Moscow’s war.

Beyond energy markets, investors were parsing a heavy schedule of policy events, with attention turning to the Federal Reserve’s Jackson Hole symposium and what it might reveal about the central bank’s path on inflation and employment. In the UK, Rightmove reported that 34% of homes are seeing price reductions in August amid a two-speed market, while monetary policy actions have started to ease some demand pressure for buyers. The mix of diplomacy, policy signals and macro data left traders watching for clarity from policymakers on rates and sanctions as the week progresses.

Geopolitical risk and energy pricing are now tightly linked. A Washington meeting between Zelenskyy and Trump, alongside European leaders, could set the tone for sanctions and energy strategies that influence prices in the near term. The Navarro op ed highlights how energy policy can become a flashpoint in diplomacy, potentially affecting alliance dynamics and oil flows. The housing market data from the UK shows resilience in some pockets even as affordability pressures bite, illustrating how policy moves rarely translate into uniform outcomes across sectors.

In this environment, markets will reward clarity and credible policy signals. The Jackson Hole focus adds another layer, as investors seek reassurance that the Fed will balance inflation and jobs without jolting markets with abrupt moves. The week’s mood will hinge on the symmetry between diplomatic performance, energy policy, and monetary signaling that could steer risk appetite for the coming months.

Highlights

Policy clarity, not headlines, will determine the next leg for prices.