In the European session, gold prices
XAUUSD
reversed losses and broke recent historical highs. Progress in peace talks between the United States and Russia is now expected, as the administration of US President Donald Trump has agreed to further discussions with Russia to push for an end to the war in Ukraine. In addition, Trump has threatened to impose 25% tariffs on imported cars, medicines and semiconductors.
As of press time, spot gold prices were up 0.30% to around $2,945/oz, hitting a high of $2,946.44, breaking the all-time high of $2,942.70 set last week.
Investors are assessing the latest news on the tariff hike and uncertainty from US President Donald Trump after the initial peace talks between Russia and Ukraine ended without the participation of Kiev and Europe.
The Trump administration said Tuesday it has agreed to further talks with Russia on ending the war in Ukraine after the first round of peace talks between Russia and Ukraine did not include Ukraine or Europe.
Ukrainian President Volodymyr Zelenskiy said it would be impossible to reach a peace deal behind his back. He postponed a visit to Saudi Arabia scheduled for Wednesday until March 10 to avoid “legitimizing” the US-Russia talks.
Russia has stepped up its demands, notably emphasizing that it will not accept NATO membership for Kiev.
Gold is considered a traditional safe haven against inflation and geopolitical uncertainty.
The market is now awaiting the release of the Federal Reserve’s January meeting minutes for further insight into the US central bank’s interest rate path this year, while keeping an eye on the potential impact of the Trump administration’s trade policies on the economy.
The market has accepted expectations that the Federal Reserve will cut interest rates by 36 basis points in 2025.
Technically, gold is up 0.30% on the day, temporarily sitting above the 0.382% Fibonacci extension level, which is considered the nearest resistance.
Once gold breaks above $2,946, it could continue to renew its all-time high with a target of around $2,971 in the short term.
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