Gold Slips as Peace Talks Lift Risk Sentiment

📉 Gold Slips as Risk Appetite Rises Amid Russia-Ukraine Peace Optimism

Gold (XAU/USD) opened the week on a weaker footing, trading around $3,350 during the European session—down nearly 1.30%—as investors shift away from safe-haven assets toward riskier instruments. The move follows renewed optimism over potential diplomatic progress between Russia and Ukraine, alongside firmer global equity markets.

🔍 Key Market Drivers:

▪️ The US Dollar Index (DXY) hovers near a two-week low, while US Treasury yields retreat after a multi-day climb.
▪️ Markets are pricing in an 88% probability of a 25 bps rate cut by the Federal Reserve in September, supported by dovish commentary from Fed officials including Vice Chair Michelle Bowman and Presidents Kashkari and Daly.
▪️ The White House announced plans to issue an executive order to counter misinformation about tariffs, easing concerns over potential disruptions in the bullion market.
▪️ Investors await key US inflation data this week, including CPI on Tuesday and PPI on Thursday, which could influence Fed policy expectations.

📊 Technical Outlook:

▪️ Gold faces selling pressure near the $3,400 psychological barrier, with immediate support at the 50-day SMA around $3,350.
▪️ A break below this level could expose the 100-day SMA at $3,292 and horizontal support near $3,250.
▪️ RSI has slipped to the neutral 50 zone, while MACD shows fading bullish momentum, suggesting buyers are losing steam.

🧭 Summary:

Gold remains under pressure as geopolitical optimism and expectations of monetary easing reshape investor sentiment. While hopes for peace talks and a softer Fed stance weigh on safe-haven demand, upcoming inflation data could be pivotal in determining the next directional move for the precious metal.