Gold Price News: Gold at USD 2,635 after geopolitical tensions and market fluctuations

The gold price has reached the level of USD 2,635 after a significant decline and is stabilizing in this area. The decline in the gold price in recent days has been influenced primarily by a stronger US dollar and higher bond yields. The US Federal Reserve's interest rate cut initially had a positive impact on the gold price, but market expectations of further interest rate cuts have weakened, affecting the stability of the precious metal. The current fluctuations reflect the uncertainties in the global markets and the geopolitical tensions, particularly in Ukraine.

The Ukrainian military is warning of possible ground attacks by Russian infantry in the Zaporizhzhia region that could begin in the coming days. This development increases the pressure on Ukrainian troops, who are already on the defensive in the east of the country. Zaporizhzhia, in southern Ukraine, has seen less intense fighting in recent months, but the worsening military situation could further fuel geopolitical risk.

Following a visit to the front line in Ukraine, EU foreign policy chief Josep Borrell said that faster and stronger military support for Ukraine is crucial to effectively counter Russian aggression. Borrell highlighted the resilience of the Ukrainian army, but called for more help to stabilize the front lines and defuse the geopolitical situation.

Air-raid sirens sounded across the country last night, and Russian air strikes have killed and injured several people in southern Ukraine, particularly in Mykolaiv and Zaporizhzhia. In response to the threat of missile strikes, preventive power outages were carried out in Kyiv, as well as in the regions of Odesa, Dnipropetrovsk and Donetsk, to protect the civilian population.

n another geopolitical incident, a Russian court has upheld the prison sentence of Xenia Karelina, a US-Russian woman convicted of “high treason” for donating 50 euros to an aid organization supporting Ukraine. This incident is increasing international tensions and attracting negative headlines, further fueling the geopolitical climate and could indirectly affect the gold market.

The gold price is currently trading at USD 2,635 and is in a critical area. Chart analysts see support at USD 2,600 and the next resistance line at USD 2,650. Should the price fall below USD 2,600 again, this could lead to further setbacks, with targets at USD 2,575 and possibly USD 2,500. A rise above USD 2,650 would allow a short-term recovery to USD 2,685, with the long-term outlook remaining positive as long as geopolitical tensions persist.

Despite the recent price fluctuations, the long-term outlook for gold remains positive. Gold ETCs and other precious metal products remain one of the preferred asset classes for investors responding to geopolitical uncertainties and potential inflation. The World Gold Council reported continued inflows into gold products, which is bolstering demand for the precious metal even if the price is under pressure in the short term.

The gold price will continue to be influenced by geopolitical tensions, particularly in Ukraine, as well as monetary policy decisions in the US. The Fed may consider further rate cuts in the coming months, which could support the gold price. At the same time, the geopolitical situation in Europe and Asia will continue to move markets and fuel demand for safe-haven assets such as gold.