- The yellow metal takes a U turn from the highest levels since June 2021 reached on the previous day.
- Traders focus on Fed after the Russian- Ukraine risk started to fade.
- The absence of Japanese traders also triggers the bearish trend of XAU/USD.
Gold is flat against the US dollar during Wednesday trading session since the safe haven demand offset by a rise in Treasury yields after the first wave of U.S. and European sanctions on Russia for sending troops into eastern Ukraine.
The markets cheers the prospects of diplomacy since there has been no further evidence that Russia has indeed infiltrated deeper into Ukraine territory.
However, A senior U.S. State Department official said “Actions the Joe Biden administration took on Tuesday and may take soon to punish Russia’s economy over its aggression in Ukraine are not intended to hit global energy markets.”
Meanwhile, The US Secretary of State Antony John Blinken announced that it doesn’t make sense for him to meet with Russia’s Lavrov anymore. He says he sent a letter today to him informing him of that.
Blinken says “Putin’s ‘disturbing’ speech yesterday and statements today showed to the world that he views Ukraine as a ‘subordinate’ of Russia” “now we know now that Putin’s plan all along has been to invade Ukraine” “Putin is blatantly breaking the laws and principles that have kept peace across Europe and in the world.”
The recent action of the gold can also be linked to the absence of Japanese traders, which indirectly affects US bond demand in Asia and restricts catalysts for gold.
St. Louis Fed President James Bullard has been among the most hawkish voices at the Federal Reserve in recent months, pushing for 100 basis points worth of rate hikes over the next three meetings.
XAU/USD 4 Hour Chart:
Latest
Popular
Trending
Archives
Search
Top Tags