Gold prices slightly moved up on Wednesday morning due to lingering concerns about the conflict in Ukraine.
As mentioned by Reuters:
The yellow metal was under pressure earlier after Russian President Vladimir Putin said on Wednesday a deal to end fighting in eastern Ukraine could be reached this week. However, Ukraine’s prime minister later rejected Putin’s proposals, saying they were an attempt to deceive the West on the eve of a NATO summit.
Muted response from physical buyers despite Tuesday’s 1.7 percent drop and heightened geopolitical tensions suggested gold’s upside could be limited, analysts said.
Edel Tully, a precious metals strategist at UBS, said:
We believe the lack of physical demand makes gold more vulnerable to the downside should U.S. employment data surprise on the upside this Friday