Gold prices come under pressure on hopes of peace talks between Russia and Ukraine;

Fundamental analysis: Conflict between progress in peace talks and investor risk aversion

The meeting between Trump and Zelensky sent a positive signal to the Russia-Ukraine peace talks. Although the two sides still have differences on border issues, the United States and Ukraine have reached a “comprehensive agreement” on security guarantees, and Trump plans to host a meeting of Ukrainian and European leaders next month to promote peace talks. However, the Kremlin’s opposition to a temporary ceasefire, coupled with Russia’s missile attack on Ukraine on Saturday, showed that military operations are continuing and the path to peace remains fragile.

As the peace talks progress, the geopolitical risk premium gained by gold due to the Russia-Ukraine conflict faces short-term downward pressure. Gold is currently trading around $4,515 an ounce, just below the all-time high of $4,549.69 but still within a higher price range. The market is still worried about the uncertainty surrounding the implementation of the agreement, and the demand for gold as a safe-haven asset has not completely disappeared, which may limit the possibility of gold prices falling.

Technical Analysis and Trading Strategies

After taking a perfect profit on a long position at $4517 this morning, the mid-day pullback was truly unexpected 😅! A pullback after prices rise and encounter resistance is a normal technical correction, but a pullback of this magnitude also indicates strong selling pressure at higher levels. Currently, the price is in a price volatility phase after breaking out of the short-term support level at $4495-4508.

Critical level:

Resistance zone: 4508-4515 (becomes resistance after breakthrough)

Support area: 4445-4450 (previous support level)

Key level: 4522 (a break above this level signals a return to the upside)

My personal trading preferences:
Although the upward trend has not yet fundamentally reversed, short-term momentum is fading. The best strategy is to sell high, because there is strong resistance near the historical high, and a direct breakthrough will require more positive stimulation. However, if prices fall back to key support levels, there is still a chance to benefit from a rebound ⚔️ given that ongoing geopolitical risks could change the situation!

Strategy reference:

Sell ​​with low leverage in the 4508-4515 area, stop loss above 4522, and target 4470-4485.

Buy in the range 4445-4450, stop loss below 4437, target 4500-4510.

Important note: The market is always seeking balance amid fluctuations. Any comments about the situation in Russia and Ukraine could lead to volatility in gold prices. Remember not to chase highs or lows, stick to key prices, and carefully control the size of your positions! Although peace has arrived, geopolitical risk premiums have struggled to decline. In the medium term, gold still has upside potential🌟.

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