XAU/USD tests key technical levels after temporarily rising
Gold (XAU/USD) retreats to $1,906, after refreshing multi-day high during Tuesday’s Asian session. Even so, the bullion prices print 0.15% intraday gains while poking June 2021 top amid the gradual run-up since late January.
The metal’s recent rally could be linked to the headlines concerning Russia’s probable invasion of Ukraine as Moscow orders troops inside Eastern Ukrainian states, citing their peacemaking efforts. Earlier in the day, Russian President Vladimir Putin’s signing of a decree "on friendship and cooperation" with Donetsk and Luhansk triggered a risk-off mood.
In a reaction to escalated fears of the Russian invasion of Ukraine, the United Nations (UN), the UK, and the US called for emergency meetings while Britain and Canada announced readiness for fresh sanctions against Russia. Additionally, Yomiuri mentioned Japan’s warning to stop the chip exports to Moscow if it invades Ukraine whereas Australia PM Scott Morrison said that they will be in lockstep with allies on sanctions on Russia.
Other than the geopolitics, downbeat US Treasury yields and receding favors for a 0.50% Fed-rate-hike in March also underpin the XAU/USD upside.
That said, the return of the US and Canadian traders will join the preliminary US PMIs for February to propel gold prices whereas headlines concerning Russia-Ukraine will gain major attention.
Tensions in the Ukraine/Russia region alongside Russia’s President Vladimir Putin recognizing two separatists in Eastern Ukraine regions increased appetite for the safe-haven status of the yellow metal. At the time of writing, Gold is trading at $1,910, and up in the week by some 0.60%.
𝐑𝐮𝐬𝐬𝐢𝐚’𝐬 𝐫𝐞𝐜𝐨𝐠𝐧𝐢𝐳𝐞 𝐃𝐨𝐧𝐞𝐭𝐬𝐤 𝐚𝐧𝐝 𝐋𝐮𝐡𝐚𝐧𝐬𝐤 𝐚𝐬 𝐢𝐧𝐝𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐭 𝐬𝐭𝐚𝐭𝐞𝐬
On Monday during the North American session, the two separatist leaders sought recognition by Russia, which they got after a “long” speech by Russian President Vladimir Putin, who put in perspective the history of Ukraine and Russia. That said, Putin urged the Russian Parliament to support the decisions, signing a decree of cooperation and friendship with Donetsk and Luhansk leaders.
Russian President Putin ordered a peacekeeping operation in eastern Ukraine’s two separatist regions while reiterating that the West will impose sanctions anyway, adding that Russia has the right to take retaliatory measures.
The non-yielding metal buyers took advantage of the US holiday observant of President’s day and pushed XAU/USD from $1,896 to $1,914, as war drums in Ukraine do not appear to fade.
The President of the European Commission said that the recognition of the two separatist territories in Ukraine is a “blatant violation of international law as well as of the Minsk agreements.” She emphasized that the EU will react with sanctions against those involved in this “illegal act.”
Across the pond, US President Joe Biden spoke with Ukraine President Zelensky. Further, US President Biden signed an executive order banning new investment, trade, and financing to the DNR and LNR regions while saying that he would announce additional measures. In the same rhetoric, Poland’s Prime Minister said that Russia’s decision is an act of aggression against Ukraine and said that sanctions should be imposed immediately. Meanwhile, in the UK, Foreign Minister Truss said that the UK would be announcing sanctions on Russia tomorrow in response.
XAU/USD Price Forecast: Technical outlook:
Gold is upward biased from a technical perspective. The daily moving averages (DMAs) reside well below XAU/USD spot price, with a bullish slope. That, alongside the break of a nine-month-old downslope resistance trendline, exacerbated the uptrend, helping XAU bulls reclaim the $1900 figure.
XAU/USD first resistance would be $1,916. Breach of the latter will expose January 2021 highs at $1,959, which once cleared could pave the way towards $2,000.
- It's important to keep in mind that cryptocurrency markets are extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours or a few days and even harder to give long-term estimates. As such, analysts and online forecasting sites can get their predictions wrong. We recommend that you always do your own research and consider the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decisions. Be patient and look long-term wisely and never invest more than you can afford to lose.
Trading & Investing both are masters of RISK.
Please comment, like, and follow if it was helpful for you.
Thank you for your time.
Have a profitable day.
| Review and analysis by Samadi.Finance |
The metal’s recent rally could be linked to the headlines concerning Russia’s probable invasion of Ukraine as Moscow orders troops inside Eastern Ukrainian states, citing their peacemaking efforts. Earlier in the day, Russian President Vladimir Putin’s signing of a decree "on friendship and cooperation" with Donetsk and Luhansk triggered a risk-off mood.
In a reaction to escalated fears of the Russian invasion of Ukraine, the United Nations (UN), the UK, and the US called for emergency meetings while Britain and Canada announced readiness for fresh sanctions against Russia. Additionally, Yomiuri mentioned Japan’s warning to stop the chip exports to Moscow if it invades Ukraine whereas Australia PM Scott Morrison said that they will be in lockstep with allies on sanctions on Russia.
Other than the geopolitics, downbeat US Treasury yields and receding favors for a 0.50% Fed-rate-hike in March also underpin the XAU/USD upside.
That said, the return of the US and Canadian traders will join the preliminary US PMIs for February to propel gold prices whereas headlines concerning Russia-Ukraine will gain major attention.
Tensions in the Ukraine/Russia region alongside Russia’s President Vladimir Putin recognizing two separatists in Eastern Ukraine regions increased appetite for the safe-haven status of the yellow metal. At the time of writing, Gold is trading at $1,910, and up in the week by some 0.60%.
𝐑𝐮𝐬𝐬𝐢𝐚’𝐬 𝐫𝐞𝐜𝐨𝐠𝐧𝐢𝐳𝐞 𝐃𝐨𝐧𝐞𝐭𝐬𝐤 𝐚𝐧𝐝 𝐋𝐮𝐡𝐚𝐧𝐬𝐤 𝐚𝐬 𝐢𝐧𝐝𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐭 𝐬𝐭𝐚𝐭𝐞𝐬
On Monday during the North American session, the two separatist leaders sought recognition by Russia, which they got after a “long” speech by Russian President Vladimir Putin, who put in perspective the history of Ukraine and Russia. That said, Putin urged the Russian Parliament to support the decisions, signing a decree of cooperation and friendship with Donetsk and Luhansk leaders.
Russian President Putin ordered a peacekeeping operation in eastern Ukraine’s two separatist regions while reiterating that the West will impose sanctions anyway, adding that Russia has the right to take retaliatory measures.
The non-yielding metal buyers took advantage of the US holiday observant of President’s day and pushed XAU/USD from $1,896 to $1,914, as war drums in Ukraine do not appear to fade.
The President of the European Commission said that the recognition of the two separatist territories in Ukraine is a “blatant violation of international law as well as of the Minsk agreements.” She emphasized that the EU will react with sanctions against those involved in this “illegal act.”
Across the pond, US President Joe Biden spoke with Ukraine President Zelensky. Further, US President Biden signed an executive order banning new investment, trade, and financing to the DNR and LNR regions while saying that he would announce additional measures. In the same rhetoric, Poland’s Prime Minister said that Russia’s decision is an act of aggression against Ukraine and said that sanctions should be imposed immediately. Meanwhile, in the UK, Foreign Minister Truss said that the UK would be announcing sanctions on Russia tomorrow in response.
XAU/USD Price Forecast: Technical outlook:
Gold is upward biased from a technical perspective. The daily moving averages (DMAs) reside well below XAU/USD spot price, with a bullish slope. That, alongside the break of a nine-month-old downslope resistance trendline, exacerbated the uptrend, helping XAU bulls reclaim the $1900 figure.
XAU/USD first resistance would be $1,916. Breach of the latter will expose January 2021 highs at $1,959, which once cleared could pave the way towards $2,000.
- It's important to keep in mind that cryptocurrency markets are extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours or a few days and even harder to give long-term estimates. As such, analysts and online forecasting sites can get their predictions wrong. We recommend that you always do your own research and consider the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decisions. Be patient and look long-term wisely and never invest more than you can afford to lose.
Trading & Investing both are masters of RISK.
Please comment, like, and follow if it was helpful for you.
Thank you for your time.
Have a profitable day.
| Review and analysis by Samadi.Finance |
Today's last price 1910.06
Today Daily Change 13.02
Today Daily Change % 0.69
Today daily open 1897.04
Daily SMA20 1833.82
Daily SMA50 1818.48
Daily SMA100 1807.12
Daily SMA200 1808.35
Previous Daily High 1902.5
Previous Daily Low 1886.67
Previous Weekly High 1902.5
Previous Weekly Low 1844.65
Previous Monthly High 1853.91
Previous Monthly Low 1780.32
Daily Fibonacci 38.2% 1892.72
Daily Fibonacci 61.8% 1896.45
Daily Pivot Point S1 1888.31
Daily Pivot Point S2 1879.57
Daily Pivot Point S3 1872.48
Daily Pivot Point R1 1904.14
Daily Pivot Point R2 1911.23
Daily Pivot Point R3 1919.97