Gold Moves Lower Amid Geopolitical And Trade Uncertainties
Gold (XAU/USD) prices are moving lower and struggling to hold near the $3,200 level at the time of writing on Friday (05/16) as many questions and concerns arise in the market and among traders. First and foremost, the Ukraine-Russia talks seemed dead and buried even before Ukrainian President Volodymyr Zelenskyy shook hands with Turkish President Recep Tayyip Erdoğan on the runway in Ankara. Russian President Vladimir Putin did not attend in person and only sent a few low-level diplomats, which was seen as Russia taunting and bullying Ukraine.
This prompted several world leaders to lash out at Russia, threatening tougher sanctions to force President Putin to the negotiating table. The market is bracing for comments from United States (US) President Donald Trump, who seems unhappy with the situation, according to Reuters.
Meanwhile, the US Dollar (USD) is being challenged by the market, which will act as a driver for XAU/USD. Volatility “in U.S. risk assets and the dollar will cause more international investors to consider hedging more of their dollar exposure and diversifying their asset allocations globally,” Mark Haefele, chief investment officer for the Swiss bank’s wealth management unit, said this week. “Gold remains an important diversifier,” Bloomberg reported.
Source: FXStreet
