Gold is witnessing a short collapse with President Trump’s search for a quick solution to Ukraine

• Gold prices regained their early losses on Friday, but are still below the level of $ 2940 on Friday.
• US sanctions on Russia may be lifted soon, in an attempt by US President Donald Trump.
• The fluctuations may increase this Friday with the issuance of the data of the American S&P Procurement Directors Index for February.

Gold prices (the gold/US dollar pair Xau/USD) decreased by more than 1% of its highest level on Thursday, which amounted . This movement comes before reading the initial Puritan Manager Index (PMI) for the United States for February and after the suspension of the Trump administration about the possibility of lifting sanctions against Russia.

At the same time, Standard & Poor’s International and Hamburg Commercial Bank (HCOB) showed that the trade activity in the services sector decreased in February in France, Germany and the euro area in general, as French initial service managers index decreased to 44.5, bypassing the estimate of 48.9 and decreased From the previous 48.2.

Now, attention will turn to the data of the American Procurement Manager Index from Standard & Poor’s for February. The services sector is expected to be the pioneering indicator, as it is expected to rise to 53.0 out of 52.9 in January.

The focus will turn to Germany this week for the general elections, which will take place on Sunday, where the far -right extremist party is expected to achieve an overwhelming victory thanks to the great participation of Elon Musk.

Daily market engines: fast repair

• The Trump administration has indicated that reducing sanctions on Russia may be on talks about the war in Ukraine, where US President Donald Trump wants a rapid solution to the conflict, according to Bloomberg’s reports.
• The shares of Laopu Gold Co. Chinese LTD, which is made and selling jewelry, by up to 21% to reach its highest level after its net profits multiplied more than three times this year, bypassing the slowdown of luxury spending, according to Reuters reports.
• Sibanye Stillwateer Ltd. South Africa in the fiscal year after the high gold prices compensated for the decline in the prices of palladium, which affected the US mining operations of the company. The loss was $ 398 million for 2024, according to Bloomberg data.

Technical analysis: Beware of a false recovery

Attention is turning to Germany this week, where people go to the polls for a new government. Although this may not directly affect the price of gold, it may witness a more striking position or softening from US President Trump towards Europe in the broader context. Monday market reactions will be interesting.

The first level to be maintained on Friday is the S1 support at $ 2923. Below, the S2 support stands at $ 2908.

On the upscale side, it will be necessary to have a great catalyst to see gold fully restores its daily losses. The axis point at $ 2939 is the first level to be restored, followed by the R1 resistance level and the highest level ever approximately at $ 2954. From there, the R2 resistance level at $ 2969 will be the next one to be monitored before looking back to $ 3,000.

Xau/USD: Daily chart