As the Ukraine war and inflation troubles combine stable yields, the XAU/USD is bracing for a $2,000 price

For the third day in a row, gold (XAU/USD) has been in the lead, with bids at $1,963 at press time in Friday’s Asian session. The previous day, amid rising anxiety over the Ukraine-Russia confrontation, the yellow metal hit a new high in almost two weeks. The metal’s recent gain, on the other hand, might be connected to a drop in the value of the US dollar. By press time, the US Dollar Index (DXY) had fallen 0.30 percent intraday to 98.50, halting a two-day upswing. The dollar’s recent fall might be attributed to slow Asian rates and market inflation worries, as well as hesitation over Ukraine’s conflict with Russia.

It’s worth remembering that most global officials, not just the Fed, have recently raised concerns about inflation, which has fueled gold’s safe-haven demand. Japan’s central bankers were the most recent to join the group. The possibility of a 0.50 percent rate rise by the US Federal Reserve (Fed) and talk about Quantitative Tightening are also worth noting (QT).

“Russia will emerge from the Ukraine crisis weakened militarily and diplomatically,” a senior US official was reported by Reuters as saying. On the same topic, Reuters published an article claiming that Russia’s precision missiles are inaccurate and that there has been a shortage of them in recent days. Australia and Japan have recently joined the West in punishing Russia, heightening concerns over the situation.

On Thursday, US Vice President Joe Biden pressed European leaders, the Group of Seven (G7), and NATO members to impose more sanctions on Russia for its invasion of Ukraine. While his NATO allies were able to set up combat guards for four Ukrainian cities and denounced Beijing’s connections with Moscow, the rest of the world mostly avoided substantial sanctions against Russia. Despite rising inflation worries and geopolitical difficulties stemming from the Russia-Ukraine conflict, the new measures provide a glimmer of hope for a good turn in the peace negotiations between Moscow and Kyiv, prompting gold dealers to remain cautious.