Gold price has dropped below $1,920. Russia and Ukraine negotiators are set to meet in Turkey for a one-on-one meeting. In absence of any progress, the yellow metal could regain some traction, strategists at Commerzbank report.

Gold in less demand

“Some market participants apparently have high hopes of the talks that will be taking place between Russia and Ukraine in Istanbul today. This is presumably why gold was in less demand. If the talks prove to be inconclusive yet again, however, we believe gold is likely to start climbing again.”

“In the EU, and especially in Germany, automotive production is (again) being cut because key components such as wire harnesses are in short supply. Citing industry sources, news agencies are reporting that some production lines in China have also been idled. The lower automotive production is likely to result in lower demand for palladium (and platinum).”