Gold is bouncing back after a poor showing on Tuesday, where price fell sharply after having hit fresh eight-month highs at the time. The drop came amid news of Russia claiming that troops are leaving after military drills. However, the whole he said, she said debacle after and today's headlines are helping to reignite the fire in gold bugs.
As things stand, gold is nudging higher in a bid to retest the November high at around $1,877.14. That marks a key daily resistance level that buyers need to close above in order to establish the next leg higher.
But of course, what comes next will highly depend on the headlines. Are we going to see tensions escalate further between Russia and Ukraine? Or is this high-octane and volatile environment the new norm between the two countries?
Over time, markets will learn to adapt but for now, it is very much a case of reacting first and then thinking about the specifics later.
As such, calmer undertones in the hours ahead may leave gold wanting in an attempt to crack the above resistance level. But if we do get more apprehensive headlines, that could be enough for gold to find the next leg to the upside.