Gold prices traded within a narrow range as investors assessed the latest geopolitical developments and awaited key US economic indicators.
Yesterday’s peace talks between US and Ukrainian officials raised hopes for a conflict resolution as Ukraine agreed to a 30-day ceasefire.
Additionally, President Donald Trumpโs openness to welcoming Ukraine‘s President Volodymyr Zelenskyy to the White House could further fuel risk-on sentiment, which could weaken goldโs appeal as a safe-haven asset.
However, uncertainty still lies ahead as conversations with Russia have yet to occur. While progress could weigh on gold prices, any setback might drive them up.
On a macroeconomic level, todayโs Consumer Price Index (CPI) numbers could play a crucial role in shaping goldโs short-term outlook. Signs of cooling inflation, coupled with recent weak labor market indicators, may bolster hopes for a dovish stance from the Fed, increasing goldโs appeal and potentially leading it to new record highs.
Conversely, robust data might postpone expectations for interest rate cuts, strengthening the dollar and pressuring gold prices.
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