Gold Slips as Ceasefire Hopes Curb Safe-Haven Demand

Key Takeaways:

• Gold retreated despite a weaker U.S. dollar and Moodys U.S. credit downgrade, as geopolitical sentiment shifted.

• Trump signals potential Russia-Ukraine ceasefire talks, prompting risk-on sentiment

Fundamental Analysis

Gold prices slipped on Tuesday, retreating from recent highs despite a weaker U.S. dollar and Moodys downgrade of the U.S. credit outlook. The move came as geopolitical sentiment improved, following remarks from former U.S. President Donald Trump suggests that Russia and Ukraine may soon begin ceasefire negotiations.

Trump said he spoke with Russian President Vladimir Putin on Monday and relayed a proposed plan to Ukrainian President Volodymyr Zelenskiy, along with several EU leaders. The Kremlin responded cautiously, saying an agreement would take time, though President Putin noted peace talks were “generally on the right track.” The developments supported a mild shift in risk appetite, reducing demand for traditional safe-haven assets such as gold.

Despite underlying macroeconomic uncertainty, including weak U.S. economic data and rising credit concerns, golds upside remained capped as investors digested the potential for easing geopolitical tensions.

Technical Analysis – GOLD

GOLD, 4-Hour Chart:

Gold prices are under pressure, pulling back from resistance at $3240.00. Momentum indicators suggest a weakening bullish bias. The Relative Strength Index (RSI) has formed a death cross and is hovering at 49, below the neutral 50-level, indicating growing bearish sentiment. Similarly, the MACD shows fading upside momentum, with signals pointing to a potential correction.

Should the current bearish momentum persist, gold may decline toward the support zone near $3120.00, with further downside risk extending to $3050.00. Conversely, a rebound above $3240.00 would open the door for a retest of the $3355.00 level if sentiment shifts back in favor of safe-haven flows.

Resistance levels: 3240.00, 3355.00

Support levels: 3120.00, 3050.00