As far as the Gold price is concerned, the key question is the extent to which the internal tensions within Russia or any potential toppling of the government might affect global monetary policy. In this context, the response of commodities prices would presumably play an important role, and whether potentially marked price fluctuations were viewed more as an economic or inflation risk. Since this is almost impossible to predict at the current time, yesterday’s rapid correction of the Gold price seems justified. 

What is more, the expectations of further rate hikes, above all in the US, are likely to continue to dampen sentiment on the Gold market. This situation is unlikely to improve for the time being as during the central bank conference that is taking place in the Portuguese city of Sintra this week, the central bank governors (Powell speaking tomorrow) will probably continue to adopt more of a hawkish tone.