Gold Price Erases Intraday Decline in Impressive Rebound Amid Focus on Ukraine Talks

Gold Price Rebounds Amid Focus on Ukraine-Russia Peace Talks in Turkey

Gold (XAU/USD) has erased its intraday decline, recovering towards $3,175 as traders shift focus to the ongoing peace talks in Turkey between Ukraine and Russia. Earlier in the day, gold had dropped significantly following remarks from US President Donald Trump. Trump suggested the possibility of negotiations with Iran for a nuclear deal, as well as addressing tensions in Yemen and Syria, which led traders to take profits and sell off gold positions in response to the perceived easing of geopolitical risks.

In addition to these comments, the market had already been under pressure earlier in the week due to trade negotiations between the US and China. The delay in China's ban on the export of goods with both civilian and military applications to 28 US companies further reduced demand for gold as a safe-haven asset.

However, attention has now turned to Turkey, where key US and European leaders are meeting to discuss potential breakthroughs in the Russia-Ukraine conflict. The peace talks, while still in the early stages, have created hope that a ceasefire may be achievable. Though the chances of a major breakthrough appear slim, with Russian President Vladimir Putin not attending the talks, any positive developments could significantly impact gold prices. Traders are now speculating that if tensions continue to ease, gold could once again test the $3,000 level, marking a return to higher values for the precious metal.

Gold’s recovery highlights its sensitivity to geopolitical developments, as traders remain on edge over the ongoing conflicts and global economic uncertainty. The focus remains on how negotiations unfold and whether further easing in tensions could drive gold prices higher.