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      Gold Prices Rise Amid Fragile Energy Truce Between Russia and Ukraine

      Gold prices increased in Asian trading on Monday, reaching above $4,200 an ounce, following Donald Trump's announcement of a proposed energy ceasefire between Russia and Ukraine. However, the optimism surrounding the truce appears tenuous, as Ukrainian officials reported Russian strikes on power plants in Kharkiv and Kyiv just hours after the announcement, raising doubts about the agreement's viability.

      President Volodymyr Zelenskyy stated that Ukraine would halt attacks on Russian energy facilities if Russia reciprocated. Despite this, the Kremlin has not confirmed the terms of the truce, and previous ceasefires brokered by Trump have failed to hold, including a 30-day moratorium in spring 2025 and a week-long pause that ended in February 2026.

      The relationship between gold prices and the energy truce is primarily linked to oil prices rather than safe-haven demand. Historically, escalations in conflict have led to increased oil prices, which in turn raise inflation expectations and strengthen the case for further interest rate hikes by the Federal Reserve, negatively impacting gold. A stable energy truce could ease fuel prices and support gold, but the current situation remains uncertain, with more significant economic indicators, such as U.S. consumer price data and remarks from Fed Chair Kevin Warsh later this week, likely to have a greater influence on gold prices.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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