Gold (XAU/USD) is currently treading water near $2,900, struggling to extend its recent rebound as investors turn cautious ahead of high-stakes US-Russia talks in Saudi Arabia. Despite the possibility of a Russia-Ukraine peace deal, uncertainty looms as the discussions exclude Ukraine and European leaders, raising concerns about geopolitical risks.
Additionally, the US Dollar’s broad-based recovery and hawkish Federal Reserve commentary have limited gold’s upside, with traders now closely monitoring upcoming speeches from Fed officials Mary Daly and Michael Barr, along with the release of the Fed’s January meeting minutes.
Top US and Russian delegates are set to discuss the Ukraine war, but markets remain cautious about any major breakthrough. While an agreement could ease geopolitical risks, the exclusion of Ukraine and Europe from the talks raises concerns about its effectiveness.
The Federal Reserve’s cautious stance on inflation has contributed to the recent rebound in the US Dollar (USD), pressuring gold’s upside.
With traders awaiting more Fed speeches and meeting minutes, gold’s next move could be influenced by fresh policy hints and US Treasury yields.
Gold is struggling to hold above $2,900, facing resistance while momentum indicators signal caution.
If gold fails to hold $2,900, sellers could test the February low of $2,864, with further downside opening the door to $2,850. However, a breakout above $2,909 could drive XAU/USD toward the record high of $2,943, with the next major target at $2,970.
Gold’s rally is at a crossroads, with geopolitical risks and Federal Reserve policy expectations shaping sentiment. If the US-Russia talks fail to produce meaningful results, gold could see fresh safe-haven demand. However, a strong US Dollar and hawkish Fed commentary could cap gains.
Traders should watch $2,900 as the pivot level, with a breakout above $2,909 needed to confirm a bullish continuation.
This post was last modified on Feb 18, 2025, 09:30 GMT 09:30