Gold Hits $3,200 As Russian, Ukrainian Delegates Meet
Gold (XAU/USD) prices are trading lower, trading at $3,178 at the time of writing on Friday (05/16) while many questions and concerns are looming 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, news emerged, which triggered further declines in Gold, that Russian and Ukrainian delegates will resume talks in Istanbul.
Meanwhile, the US Dollar (USD) is facing challenges from the market, which will act as a driver for XAU/USD. Volatility “in U.S. risk assets and the dollar will encourage 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
