Gold Price News: Gold Dips Amid Efforts to Find Peace in Ukraine

Gold prices fell over 1% on Friday, as the markets reacted to US-led efforts to find a peace deal between Russia and Ukraine.

Prices fell as low as $2,883 an ounce on Friday afternoon, down from an intraday high of $2,994 an ounce and from around $2,932 an ounce in late trades on Thursday.

Eyes on Munich security conference

Ukraine’s President Volodymyr Zelensky met with US Vice President JD Vance and other officials in Munich on Friday to discuss plans for ending the war with Russia. While Zelensky said more work was needed to find a peaceful settlement, the latest developments raised the prospect of an end to hostilities in the coming weeks or months, removing some of gold’s safe-haven appeal.

Nevertheless, gold prices remain near their recent all-time highs, and ongoing supportive elements include concerns over the outlook for the world economy amid signs of an escalating trade war and expected further cuts to interest rates this year by major central banks.

Technical analysis

On the technical charts, gold prices were trading on Friday at just above ascending oblique major support at $2,887 an ounce. The coming week will be a test of whether that support level can hold. Any downside from here could test the 20-day moving average at $2,819 an ounce, followed by oblique major support at $2,757 an ounce. Should prices continue higher, the next target would be rising oblique minor resistance at $2,988.50 an ounce.

Upcoming data/events

Looking ahead, Monday and Tuesday will bring a round of speeches by US Fed officials, for the latest signals on monetary policy, while Tuesday will see Euro Area economic sentiment figures for February and the Canadian inflation rate for January.