Gold Price News: USD 2,621 – Markets react to US budget decision and geopolitical tensions

The gold price is trading at USD 2,621 per troy ounce today, showing a moderate recovery compared to previous days. The markets remain in a phase of uncertainty, while investors are paying close attention to global developments.

Geopolitical tensions in Ukraine and ongoing political uncertainty in the US are causing investors to hold back. At the same time, discussions about future economic policy under the new US administration are influencing the markets' appetite for risk.

The looming shutdown of the US government was averted when US President Joe Biden signed the interim budget. The budget ensures funding for government agencies until March 14, 2025 and includes USD 100 billion in disaster relief and USD 10 billion in support for farmers.

The agreement was reached at the last minute after Donald Trump and Elon Musk had derailed a previous version of the plan. At 118 pages, the final version is much more compact than the original draft. Investors view the decision positively as it reduces short-term risks for the US economy.

After the deadly attack at the Christmas market in Magdeburg, Donald Trump and Elon Musk have sharply criticized the German government. Musk called for the resignation of Chancellor Olaf Scholz and described him as an “inept fool”. In addition, both blamed migration and a lack of border controls for the attack.

US Vice President-elect JD Vance supported Musk's statements and indirectly recommended voting for the AfD on platform X. These comments are causing considerable tension in transatlantic relations and raise the question of the future direction of US foreign policy.

After more than 70 hours of negotiations, Volkswagen and IG Metall have reached an agreement. The new collective agreement provides for the preservation of all German plants, but around 35,000 jobs are to be cut by 2030. Production lines will be relocated abroad, including the Golf and Golf Variant models, which will be manufactured in Mexico from 2027.

In return, the company is refraining from operational layoffs. Employees will accept no wage increases and reduced bonuses for two years. The savings should amount to 1.5 billion euros annually. The stock market reacted cautiously to the news, as Volkswagen's structural challenges are seen as long-term.

The German Federal Criminal Police Office is conducting investigations into Russian war crimes in Ukraine on behalf of the Federal Prosecutor General. More than 700 tips have been received, including reports of intentional killings, torture and the abduction of children. German authorities are cooperating with international partners such as the International Criminal Court and the Ukrainian Office of the Prosecutor General.

First arrest warrants have already been issued against high-ranking Russian politicians and military officials. These systematic investigations emphasize the efforts to hold those responsible for serious human rights violations and to bring perpetrators to justice.

The gold price is showing a recovery at USD 2,621, which can be attributed to uncertainties in the US and Europe. The USD 2,620 mark was exceeded, while the next resistance level is at USD 2,650.

Currently, technical indicators suggest positive momentum. The Relative Strength Index (RSI) is at 55, indicating moderate buying momentum. The Moving Average Convergence Divergence (MACD) shows a buy signal, supporting the continuation of the uptrend. Trading volumes have increased, indicating increased interest in gold. A breakthrough above the $2,650 mark could push the price towards USD 2,680.

Markets are reacting cautiously to developments in the US and Europe. The US budget that has been passed has averted short-term risks, but political tensions in Germany and the escalation of the Ukraine conflict remain key issues.

Investors continue to look at the structural problems at Volkswagen, which are casting a spotlight on the German economy. In the coming days, the gold price is expected to be strongly influenced by geopolitical and economic developments. The levels of USD 2,600 and USD 2,650 remain crucial for further price movement.