Higher In Asia

Gold deals ~$4/oz firmer to print ~$1,923/oz at writing, with the move higher facilitated by a downtick in the USD and U.S. Tsy yields.

• To recap, bullion briefly fell to one-month lows ($1,890.2/oz) on Tuesday as perceived progress in Russia-Ukraine talks facilitated risk-positive outflows. Still, the yellow metal pared losses when Russian negotiators cautioned that talks had “a long way to go”, while western-led scepticism over Russian concessions further shaved earlier optimism re: a de-escalation in the conflict, with prices ultimately closing ~$3/oz lower for the day.
• To elaborate, Russia’s announcement to scale back military activity around Ukraine’s north did not address recent Russian plans to concentrate forces in the east of the country, with the U.S. calling the former a “repositioning” rather than a withdrawal. Well-documented Russian demands for Ukraine to cede territories also saw incremental progress, with Ukraine offering to discuss the matter separately from ongoing ceasefire negotiations.
• On the technical front, gold’s move lower on Tuesday breached support at ~$1,902.7/oz (50-Day EMA) and $1,895.3/oz (Mar 16 low) exposing further support at $1,878.4/oz (Feb 24 low and key short-term support).