Downward pressure on XAUUSD concerning geopolitical development

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Reports of a ceasefire between Israel and Lebanon have emerged. If confirmed, this could reduce gold's appeal as a safe-haven asset, potentially exerting downward pressure on its price.

On February 8, 2025, Lebanon formed a new government led by Prime Minister Nawaf Salam, ending a prolonged political deadlock. The new administration aims to implement reforms to address Lebanon's economic crisis and to ensure the reconstruction of areas damaged during the recent conflict with Israel. The ceasefire agreement with Israel, initially set to expire, has been extended to February 18, 2025.

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