FX.co ★ Gold Pulls Back Slightly

Gold prices dipped below $4,500 per ounce on Monday, retreating slightly from their record highs, likely due to profit-taking and indications of easing geopolitical tensions. President Donald Trump commented that peace negotiations with Ukrainian President Volodymyr Zelenskiy have made considerable progress, although finalizing an agreement could still take several weeks. Trump also expressed his willingness to address Ukraine's parliament, participate in trilateral discussions with Zelenskiy and Russian President Vladimir Putin, and engage with European leaders in January. Zelenskiy mentioned that 90% of the framework is agreed upon, and US-Ukraine security assurances are fully settled, although several key issues remain unresolved. Despite this, gold has surged over 70% this year, poised for its strongest annual increase since 1979. This rally is supported by central bank purchases, consistent ETF inflows, persistent geopolitical tensions, and Federal Reserve interest rate cuts, with markets anticipating further easing in the coming year.