On Wednesday (February 25th), in the morning session of the Asian market, spot gold fluctuated narrowly and is currently trading around $2917.19 per ounce. On Tuesday, gold prices fell to $2888.14 per ounce, a new low since February 18th. After several days of resistance to rising gold prices, some bulls took profits, dragging down the performance of gold prices. In addition, the United States and Ukraine have reached an agreement on the terms of a mineral agreement draft, and US President Trump is seeking a quick end to the war between Ukraine and Russia, which is also suppressing the demand for safe haven gold.

However, the market continues to be concerned about the instability caused by US President Trump's tariff plan, and with weak US consumer confidence and the US dollar index approaching a more than two month low again, it still attracts bargain hunters to support gold prices. Spot gold closed at $2914.85 per ounce on Tuesday.

So far this year, safe haven gold has reached 11 historic highs, breaking the important milestone of $2950 per ounce at one point.

Bob Haberkorn, Senior Market Strategist at RJO Futures, said, "What you see is profit taking and people wanting to rebuild their positions at lower prices

During the week ending February 18th, gold speculators reduced their net long positions by 13605 contracts to 201962 contracts.

Two insiders said on Tuesday that the United States and Ukraine have reached an agreement on the terms of a draft mineral agreement, which is crucial for Kiev to win support from Washington. US President Trump is seeking a quick end to the war between Ukraine and Russia.

Trump told reporters that Ukrainian President Zelensky hopes to come to Washington later this week to sign the agreement. I heard he will come on Friday, "Trump said. He also told reporters that if an agreement is reached to end the conflict, some form of peacekeeping force needs to be deployed in Ukraine.

The conclusion of the US Ukraine mineral agreement and Zelensky's visit to the United States indicate that there may be signs of easing in the Ukrainian crisis. The reduction of geopolitical risks usually weakens the demand for gold as a safe haven asset, which may lead to short-term pressure on gold prices.

However, the US Consumer Confidence Index for February, released by Zhou Ershi Enterprise Research, fell by 7 points, the largest decline since August 2021, to 98.3, far lower than the 102.5 estimated by economists surveyed by Reuters. This further indicates that the American public is increasingly concerned about the potential negative impact of President Trump's policies on the economy.

Anne Wealth Management Chief Economist Brian Jacobsen said, "The current situation index has improved, but consumers expect the sky to be dark in the future. The changes are frightening, so it is not surprising that confidence has declined“

Traders are betting that the Federal Reserve may resume interest rate cuts in June and may further reduce short-term borrowing costs in September; The US dollar index fell 0.39% to 106.29 on Tuesday, approaching the two month low of 106.12 hit on Monday.

In addition, Trump ordered an investigation into US copper imports on Tuesday to rebuild domestic copper production. This move may lead to new tariffs, opening up a new front for Trump's attack on global trade norms. This still attracts safe haven buying to support gold prices.

Trump stated on Monday that tariffs on imported goods from Canada and Mexico are being "pushed forward on time and as planned," despite efforts by both countries to strengthen border security and prevent fentanyl from flowing into the United States before the March 4th deadline.

Meanwhile, according to a research report released by the San Francisco Federal Reserve, investors and economists expect the Fed to respond strongly and systematically to changes in inflation and the labor market.

Investors are currently waiting for the release of the US Personal Consumption Expenditures (PCE) Price Index report on Friday, which is a favored inflation indicator by the Federal Reserve, to understand clues about the path of interest rate cuts and monetary policy.

This trading day will welcome the G20 Finance Ministers and Central Bank Governors Meeting, the annualized total sales of new homes in January in the United States, and speeches from the Federal Reserve's Bostic. Investors need to pay attention.