The gold price seems vulnerable above $3,200 as it encounters fresh supply during Tuesday’s Asian session. This shift comes as optimistic talks regarding a potential ceasefire between Russia and Ukraine gain momentum.

Despite a recent downgrade of the US government’s credit rating, investor sentiment is largely anchored in the optimism surrounding trade discussions between the US and China. The evolving narrative surrounding these geopolitical factors significantly impacts gold trading strategies.

Investors should pay close attention to how these dynamics play out. Keeping a close watch on market trends will be crucial in navigating volatile environments.