Gold reacts to unserious peace talks

The United States and Russia recently held peace talks in Saudi Arabia without Ukraine’s participation. Russian officials did not mention offering any concessions and U.S. officials did not claim to have scored any in Tuesday's meeting.

Adding to the unseriousness of the talks, Donald Trump called Zelensky a “dictator,” and suggested that Ukraine is responsible for the war, echoing obvious Russian talking points.

Gold rose above $2,930 per ounce on Wednesday, just shy of last week’s record high of $2,940.

Technical indicators remain in extreme overbought territory, although extreme geopolitical uncertainty may call for extreme readings for longer. In the near term, the pullback appears corrective, with XAU/USD still holding above all key moving averages on the 4-hour chart.