Gold steadies as investors eye Russia-Ukraine peace talks
Gold prices held steady on Wednesday, with investors watching out for peace talks after U.S. President Donald Trump's administration agreed to conduct more discussions with Russia on ending the war in Ukraine.
Spot gold steadied at $2,938.13 an ounce, as of 0831 GMT, but was only $4 shy of its all-time high of $2,942.70 hit last week.
U.S. gold futures added 0.2% to $2,956.20.
"Gold's upside remains capped as first round of talks between the U.S. and Russia over potential peace deal in Ukraine has ended with no clear path but if they come out with a solid plan, then definitely it could be negative for gold," said Ajay Kedia, director at Mumbai-based Kedia Commodities.
"There should be technical profit-booking because war premium should be slightly eroding. The upside could be capped around $2,970 as resistance and $2,890 as support."
Trump's administration said on Tuesday it agreed to hold more talks with Russia on ending the war in Ukraine after the initial Russia-Ukraine peace talks finished without Kyiv or Europe at the table.
Bullion is viewed as a traditional hedge against rising inflation and geopolitical uncertainties.
The market now awaits the Federal Reserve's January meeting minutes due later in the day for clues into the U.S. central bank's interest rate trajectory this year.
"Trump's presidency is creating macroeconomic and geopolitical uncertainties that are likely to prompt investors to diversify into gold," analysts at ANZ said.
Trump said on Tuesday he intends to impose auto tariffs "in the neighborhood of 25%" and similar duties on semiconductors and pharmaceutical imports.
"Car production was already weak last year ... tariffs on cars would weigh on sentiment for the white metals," UBS analyst Giovanni Staunovo said.
Spot silver gained 0.3% to $32.98 an ounce. Auto-catalysts platinum fell 0.8% to $979.75 and palladium was trading about 0.7% lower at $980.
Source: Bloomberg
