Gold ticks up on Russia-Ukraine tensions, EU-US trade optimism restricts upside
The post Gold ticks up on Russia-Ukraine tensions, EU-US trade optimism restricts upside appeared on BitcoinEthereumNews.com.
Gold price recovers to near $3,305 despite increasing hopes for a US-EU trade deal. Russia’s Putin demands that NATO restrict its eastern expansion in writing. Investors await FOMC minutes and the US PCE inflation data for April. Gold price (XAU/USD) trades higher 0.15% to near $3,305 during North American trading hours on Wednesday, following an over 1% sell-off the previous day. The yellow metal ticks up as hopes of a ceasefire between Russia and Ukraine have diminished. Gold price tends to perform better in heightened geopolitical tensions. Russian leader Vladimir Putin has demanded assurance from Western leaders to restrict the NATO enlargement on the east side in writing and the removal of sanctions on his nation to end the war in Ukraine. In contrast, German Chancellor Friedrich Merz stated that “we [the European Commission (EC)] are conducting talks with the US on additional sanctions against Russia.” However, the upside is expected to remain limited as investors become increasingly confident that the United States (US) and the European Union (EU) will secure a trade deal soon. During North American trading hours, EU officials stated that US trade negotiators Howard Lutnick and Jameison Greer have agreed to trade discussions every other day. Additionally, German carmakers BMW, Mercedes, and Volkswagen are in talks with the US trade ministry on tariffs and aim to reach an agreement by early July, according to a report by German newspaper Handelsblatt. This reflects the EU’s intention to fast-track trade talks and reach a bilateral deal swiftly. On Tuesday, US President Donald Trump expressed confidence in a post on Truth.Social that the EU is making swift efforts to come to the table for trade negotiations with Washington. “I was extremely satisfied with the 50% Tariff allotment on the European Union, especially since they were “slow walking”. I have…
Filed under: News - @ May 28, 2025 7:27 pm