System’s gold inflation-the same day a 0.15% increase outnumbers the $3,305 value for XAU/USD, during trading hours in North America. This follows a decrease of over 1% the day before. The precious metal’s rise is fueled by fading hopes of a peaceful resolution between Russia and Ukraine. Gold is known to perform well in times of increased geopolitical tensions. Russian leader Vladimir Putin has demanded written assurance from Western leaders to limit NATO expansion to the east and remove sanctions on his nation in order to end the conflict in Ukraine. On the other hand, German Chancellor Friedrich Merz has stated the European Commission (EC) is discussing with the US to impose more sanctions against Russia. Despite this, the potential for an agreement between the US and EU on trade has helped minimize the gold price’s gains. European officials have confirmed regular talks between US trade negotiators Howard Lutnick and Jameison Greer. Additionally, German carmakers BMW, Mercedes, and Volkswagen are in discussions with the US trade ministry to reach a trade agreement by early July. This shows the EU’s determination to expedite trade negotiations and reach a bilateral agreement quickly. US President Donald Trump has expressed positivity about the EU’s efforts to engage in trade discussions with the US. In a post on Truth.Social, Trump wrote that he was satisfied with the 50% tariff allotted to the EU, and he has been informed that the EU has reached out to establish meeting dates. This news is a positive event and Trump hopes that the EU will continue to cooperate. This development reflects the importance of the trade relationship between the US and EU, as both economies contribute significantly to global business. The potential for a trade deal has also boosted the US Dollar Index (DXY), which has risen to near 99.85 during European trading hours. This recovery from Tuesday’s performance has made gold a more expensive investment for traders, which has led to some difficulty for the precious metal to surpass an upward-sloping trendline at $3,335 on a daily timeframe. However, the overall trend for gold remains bullish as it holds above the 20-day Exponential Moving Average at $3,288. The 14-day Relative Strength Index (RSI) shows indecisiveness among market participants as it oscillates within the 40.00-60.00 range. In terms of key levels, the May 7 high at $3,440 will act as a significant resistance, while the May 15 low at $3,120 remains a crucial support level.