Can Russia-Ukraine Tensions Support Gold Prices?

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Gold, US Dollar (USD) Talking Points:

  • Gold costs linger regardless of escalating tensions between Ukraine & Russia
  • Interest charge expectations and an aggressive Fed might impede additional Bullion beneficial properties
  • XAU/USD awaits the discharge of the extremely anticipated US CPI print

Russia-Ukraine tensions intensify, Gold holds regular

Gold costs are at the moment buying and selling with listless momentum regardless of intensifying tensions between Russia and the Ukraine and escalating fears of an invasion.

Although excessive inflation charges and rising geopolitical dangers have lately underpinned Bullion costs, the rising likelihood of upper charges and rising yields have restricted additional beneficial properties, forcing bulls right into a wall of resistance, shaped by key Fibonacci ranges of historic strikes.

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As employment and inflation stay the 2 core metrics for the Federal Reserve, the discharge of a surprisingly optimistic NFP report on Friday now locations US inflation knowledge on the forefront of threat sentiment, posing as a further catalyst for Gold costs.

DailyFX financial calendar

Gold Price Analysis

As Gold costs purpose for his or her second consecutive week of beneficial properties, key Fibonacci ranges from each the 2020 and 2021 strikes proceed to offer each help and resistance for the yellow steel.

With bulls now trying to interrupt by means of the 50% retracement of the 2021 transfer at $1,818, the following hurdle resides on the subsequent key Fib degree of $1,833 which then leaves the door open for a transfer in the direction of $1,852.

Gold (XAU/USD) Weekly Chart

XAU/USD Outlook: Can Russia-Ukraine Tensions Support Gold Prices?

Chart ready by Tammy Da Costa utilizing TradingView

Meanwhile on the each day time frame, the potential formation of a doji candle is a possible indication that bulls could also be dropping steam as they battle to achieve traction.

While the CCI (commodity channel index) stays inside regular vary, a rise in promoting strain and a shift in the direction of riskier property might see costs falling again in the direction of the important thing psychological degree of $1,800 which might permit for a continuation of the bearish development that has endured for the reason that August 2020 excessive.

Gold (XAU/USD) Daily Chart

XAU/USD Outlook: Can Russia-Ukraine Tensions Support Gold Prices?

Chart ready by Tammy Da Costa utilizing TradingView

Gold (XAU/USD) Sentiment

XAU/USD Outlook: Can Russia-Ukraine Tensions Support Gold Prices?

Gold: Retail dealer knowledge reveals 74.66% of merchants are net-long with the ratio of merchants lengthy to quick at 2.95 to 1. The variety of merchants net-long is 5.56% decrease than yesterday and 15.39% decrease from final week, whereas the variety of merchants net-short is 25.62% larger than yesterday and 47.16% larger from final week.

We usually take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests Gold costs might proceed to fall.

Yet merchants are much less net-long than yesterday and in contrast with final week. Recent modifications in sentiment warn that the present Gold value development might quickly reverse larger regardless of the very fact merchants stay net-long.

— Written by Tammy Da Costa, Analyst for

Contact and comply with Tammy on Twitter: @Tams707

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