FX.co ★ Gold Stabilizes After Sharp Selloff

Gold steadied above $4,350 per ounce on Tuesday, following a significant decline of over 4% in the previous session driven by profit-taking. This drop on Monday was the metal’s most substantial intraday decrease since October and only the second sharp decline it has experienced this year. The downside is constrained, however, by gold's enduring status as a safe-haven asset amid ongoing geopolitical tensions. The peace negotiations between Russia and Ukraine have faced additional setbacks, as reports indicate that President Putin communicated to President Trump that Moscow would reevaluate its negotiation stance after alleged Ukrainian attacks on Putin’s residence. Concurrently, President Trump issued warnings regarding further actions against Iran should it proceed with nuclear developments, and declared that the US had targeted a facility tied to drug activities in Venezuela. Despite these tumultuous events, gold is on course for its most significant annual increase since 1979, buoyed by robust central bank purchases, continuous ETF inflows, and the anticipation of further US interest rate reductions.