Gold price seems vulnerable above $3,200 amid possible Russia-Ukraine ceasefire
Gold price meets with a fresh supply during the Asian session on Tuesday and reverses the previous day's move higher on the back of the upbeat market mood. Despite a surprise downgrade of the US government's credit rating on Friday, investors continue to cheer the latest optimism over the US-China trade truce for 90 days. This is evident from a generally positive tone around the equity markets, which, in turn, is seen undermining demand for traditional safe-haven assets and exerting pressure on the bullion.
Meanwhile, expectations that the Federal Reserve (Fed) will lower borrowing costs further amid signs of easing inflation and a sluggish economic outlook fail to assist the US Dollar (USD) to attract any meaningful buyers. This, however, does little to lend any support to the non-yielding Gold price. Even persistent geopolitical risks fail to inspire bulls, suggesting that the path of least resistance for the XAU/USD is to the downside. However, the range-bound price action witnessed over the past week or so warrants caution.
Source: Fxstreet
