Gold: XAU/USD finds support at the $4,300 area

LONDON (December 30) Gold (XAU/USD) depreciated more than 4%, from all-time highs at $4,555, on its weakest performance in months amid thin trading volumes on Monday. The pair is now trying to pick up from the $4,300 area, supported by a sourer market sentiment on Tuesday, amid escalating geopolitical tensions.

Moscow announced on Monday that Russia will review its stance on the peace talks with Ukraine, after claiming an attack on President Putin’s residence. The alleged attack, denied by Kyiv, has dampened the frail hopes triggered by the meeting between US President Trump and his Ukrainian counterpart, Volodymyr Zelenskyy, over the weekend.

In the South East Sea, China extends its military drills around Taiwan for the second day, while US President Trump has warned about a new round of attacks on Iran if the Islamic Republic resumes its nuclear weapons program.

Later on the day, the US Federal Reserve will release the minutes of their December meeting and might have a relevant impact on the US Dollar and on precious metals.

FXStreet