Gold Price Forecast: XAU/USD pauses on the way to $1,975, Ukraine in focus

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Gold Price Forecast: XAU/USD pauses on the way to $1,975, Ukraine in focus
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Gold Price Forecast: XAU/USD pauses on the way to $1,975, Ukraine in focus By anilpanchal7 Gold Fed Ukraine Commodities RiskAppetite

Russia-Ukraine peace talks eyed amid hopes of ceasefire, Moscow’s aggression.

The yellow metal took a U-turn from a weekly high to print the biggest daily loss in a fortnight the previous day as market sentiment improved amid hopes of ceasefire talks between Russia and Ukraine. However, cautious mood ahead of the stated negotiations and increasing odds of a faster pace of Fed’s rate-hike seem to restrict the metal’s latest moves.of a probable meeting today, with a ceasefire on the table.

The geopolitical risks also hike the inflation woes and push Fed Chair Powell to suggest faster rate lifts, to the tune of 0.50% if needed. The same propelled inflation expectations and probabilities of such an action in March, as portrayed by CME’s FedWatch Tool and the 10-year breakeven inflation rate per the St. Louis Federal Reserve data.

Chair Powell’s testimony to entertain traders. However, Russia-Ukraine headlines will be crucial for the near-term direction.Despite the latest inaction, gold remains above the 10-month-old horizontal area amid the broad rush to risk safety.

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