- It retraces from the previous day’s high and consolidates within a tight range just above the $1,930 level during the European session.
- There is a slight risk aversion in the markets caused by the lack of progress in the peace talks between Russia and Ukraine.
- The focus will remain on advancing talks to determine the next move in gold prices.
The price of gold (XAU/USD) consolidates within a narrow range just above the $1,930 level during the European session on Friday, having extended the pullback from the $1,950 level tested the day before, amid mild risk aversion in the markets caused by the lack of progress in the Russia-Ukraine peace talks .
Market sentiment remains sour after the lack of progress in the peace talks between Russia and Ukraine, which benefits the USD. The US dollar is once again experiencing new safe-haven demand, which is putting downward pressure on the dollar-denominated price of gold.
Earlier in the day, Ihor Zhovkva, aide to Ukrainian President Volodymyr Zelenskyy, said that talks between Ukraine and Russia are progressing slowly. However, on Wednesday, Zhovkva said that the negotiations had become “more constructive” and that Russia had softened her stance by not issuing her demands that Ukraine surrender. It is likely that Zhovkva’s change of position in the peace talks has weighed on sentiment of the market this Friday.
A few minutes ago, the Kremlin issued a statement stating that “the Russian delegation in Ukraine has expressed its readiness to work much faster than now“, but what “the Ukrainian delegation has not shown a similar willingness to speed up the talksbut those negotiations continue.”
On the other hand, several Russian media outlets report on a possible call between Russian President Vladimir Putin and German Chancellor Olaf Scholz. TASS claims that Putin told Scholz that kyiv was trying to delay the Ukraine peace talks. While the Russian government agency RIA reports that Putin told Scholz that kyiv is making unrealistic proposals.
Gold price is consolidating in a range between $1,930 and $1,937 during the European session, waiting for a catalyst for the next directional move. Given the lack of high-level macro releases from the US on Friday, all investors’ attention will remain on the news of the Russia-Ukraine talks to determine market sentiment and the direction of XAU/USD.
gold technical levels
Source: Fx Street
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