Gold Prices Recover Amid Russia-Ukraine Geopolitical Risks

Despite these positive factors, gold’s growth is capped by expectations of a less aggressive Federal Reserve rate-cut cycle. Investors have become increasingly convinced that President-elect Donald Trump’s proposed policies will stoke inflation, which could limit the Fed’s ability to lower rates. This has led to a rise in U.S. Treasury yields, further strengthening the dollar and weighing on gold’s upside potential. The yellow metal’s near-term direction will depend on how geopolitical tensions evolve and the market’s reaction to U.S. economic data.

Geopolitical events, including heightened tensions between the U.S. and Russia, along with ongoing conflict in the Middle East, have provided a boost to gold’s haven appeal. However, gold’s struggles to push past the $2,600 threshold highlight the challenge the metal faces from stronger yields and the dollar’s ascent.

On the downside, gold prices face support around the $2,535-$2,536 area, where a failure to maintain levels above this could open the door for further declines. The next key support is around $2,500, which coincides with the 61.8% Fibonacci retracement level.

​In conclusion, while geopolitical uncertainties offer some support to gold prices, the metal’s ability to regain a foothold above $2,600 is crucial for the bulls to remain in control.