Tensions surrounding Ukraine have eased somehow ahead of the weekend
Gold has been trending mostly higher this week, deriving support from its safe-haven status amid persisting geopolitical tensions. Following the initial jump to the $1,880 zone earlier in the week, the bullion retreated but managed to regain the upside momentum eventually. As a result, the XAUUSD pair briefly exceeded the $1,900 figure for the first time since June before correcting slightly lower.
Tensions surrounding Ukraine have eased somehow ahead of the weekend amid reports that US Secretary of State Antony Blinken is ready to meet with Russian Foreign Minister Sergey Lavrov late next week if Moscow doesn’t invade in the coming days. In a sigh of relief, global equity markets bounced to turn mostly positive on Friday. Helping to keep the calmer mood, the Ukraine defense minister said it estimates the probability of large-scale escalation as low.
Still, investors continue to be cautious, with the optimism looking too fragile to bet on more robust gains in equities in the near term. US stock index futures turned positive after a sell-off witnessed yesterday, with European stocks trading marginally higher.
In the immediate term, the precious metal could struggle to regain the upside momentum as risk sentiment keeps improving ahead of the North American trading. Also, investors may opt to take more profit at attractive levels ahead of the weekend. In this context, the market focus now shifts to the $1,880 region, followed by the $1,870 intermediate support.
In a wider picture, however, the bullion remains underpinned by geopolitical developments surrounding the Russia-Ukraine crisis. On the upside, gold buyers need to push the prices back above $1,900 where a strong supply zone arrives. Should the yellow metal overcome this barrier and confirm the breakout, the $1,916 peaks will come into the market focus.