Gold prices declined due to optimism regarding a potential ceasefire between Russia and Ukraine, with US President Trump announcing immediate negotiations. This sentiment reduced demand for safe-haven assets like gold. Additionally, a significant outflow of 30 tonnes from gold-backed ETFs marked the largest withdrawal since September 2022, indicating waning institutional interest. Meanwhile, expectations for future Federal Reserve rate cuts remain amid mixed inflation data, though hawkish Fed commentary adds caution. Ongoing Middle East tensions may offset some selling pressure, and upcoming economic indicators and Fed speeches could influence gold's future direction.
Gold prices fell as optimism grew for a ceasefire between Russia and Ukraine, and the largest outflow from gold-backed ETFs since September 2022 pressured the market.
Growing optimism surrounding negotiations to end the Russia-Ukraine conflict diminished demand for gold as a safe-haven asset, reflected in substantial ETF outflows.
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