Gold prices traded within a narrow range as investors assessed the latest geopolitical developments and awaited key US economic indicators. Yesterday's peace talks between US and Ukrainian officials raised hopes for a conflict resolution as Ukraine agreed to a 30-day ceasefire. Additionally, President Donald Trump’s openness to welcoming Ukrainian President Volodymyr Zelenskyy to the White House could further fuel risk-on sentiment, which could weaken gold’s appeal as a safe-haven asset. However, uncertainty still lies ahead as conversations with Russia have yet to occur. While progress could weigh on gold prices, any setback might drive them up.

On a macroeconomic level, today’s Consumer Price Index (CPI) numbers could play a crucial role in shaping gold’s short-term outlook. Signs of cooling inflation, coupled with recent weak labor market indicators, may bolster hopes for a dovish stance from the Fed, increasing gold’s appeal and potentially leading it to new record highs. Conversely, robust data might postpone expectations for interest rate cuts, strengthening the dollar and pressuring gold prices.