Gold Retreats, Fresh Spikes Could Lie Ahead

Gold prices peaked at September 2020 highs around $1,International Gold MT4 is a Formal Platform975 on Thursday before profit-taking, pushing the bullion back below the $1,900 handle ahead of the weekend. Following the latest downside correction, the XAU/USD pair turned slightly lower on the weekly charts following three bullish weeks in a row. Despite the precious metal retreating from the mentioned peaks, prices stay within a broader uptrend.

Furthermore, fresh spikes could be expected down the road as geopolitical tensions between Russia and Ukraine will continue to push investors to safe-havens. According to the latest developments on this front, Russia is reportedly ready to send a delegation to Minsk for talks with Ukraine.

Market players cheered the news, but on the other hand, the headline news came after surrounding the capital city of Kyiv with troops and engaging in military action, suggesting Moscow is likely not ready to step back. In other words, the situation remains extremely complicated, which implies that the downside potential for safe-haven assets, including gold and the US dollar is limited at this point while bullish risks stay solid.

As for the latter, the USD index turned lower on the day, retreating below the 97.00 handle in recent trading as risk aversion has diminished ahead of the North American session. The precious metal could target this week’s lows around $1,878 next if investor sentiment continues to improve in the immediate term. However, it looks like dip buyers could reemerge in case of a deeper retreat, with the mentioned long-term peaks staying in the market focus as long as the Russia-Ukraine war continues to torture the globe.

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