XAU/USD Current price: $1,863.70
- Tensions between Russia and Ukraine boosted demand for safe-haven gold.
- Global stocks sunk as speculative interest rushed into safety.
- XAU/USD is correcting near-term overbought conditions but retains its bullish stance.
Spot gold trades near a fresh 2022 high of $1,870.97 a troy ounce, as persistent geopolitical tensions between Russia and Ukraine, dominate financial markets, spurring risk aversion. Tensions escalated as Russia deployed troops around Ukraine’s border and demanded the small county not to join NATO nor join other European institutions. The US and other European nations have recommended their citizens to leave the country as they prepare a contra-offensive should Russia invade the country.
Around-the-clock diplomatic talks have been taking place since last week, but there has been no material progress. Investors rushed away from high-yielding assets, and global indexes sunk in the red. Most US indexes trade in negative territory, although the Nasdaq Composite holds on to modest intraday gains.
Meanwhile, the macroeconomic calendar had nothing relevant to offer, exacerbating sentiment-related trading. Government bond yields, in the meantime, ticked lower, although the yield on the US 10-year Treasury note seesaws around 2%.
Gold price short-term technical outlook
The XAU/USD pair retreated from the mentioned high but holds on to intraday gains, maintaining its bullish stance. The daily chart shows that gold keeps advancing above all of its moving averages as the 20 SMA gains traction upward above the longer ones. Technical indicators, in the meantime, remain within positive levels, although with limited upward strength.
The 4-hour chart shows that gold reached overbought conditions but also that bulls retain control. Technical indicators are currently consolidating at extreme levels, while the 20 SMA heads firmly north, far below the current level while above the longer moving averages. The safe-haven metal peaked at $1,877.15 a troy ounce back in October, the immediate resistance level, with a break above the latter exposing the 1,900 threshold.
Support levels: 1,861.60 1,847.10 1,835.30
Resistance levels: 1,877.15 1,887.26 1,900.00
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD trades at yearly lows below 1.0500 ahead of PMI data
EUR/USD stays on the back foot and trades at its lowest level since October 2023 below 1.0500 early Friday, pressured by persistent USD strength. Investors await Manufacturing and Services PMI surveys from the Eurozone, Germany and the US.
GBP/USD falls to six-month lows below 1.2600, eyes on key data releases
GBP/USD extends its losses for the third successive session and trades at a fresh fix-month low below 1.2600. This downside is attributed to the stronger US Dollar (USD) as traders continue to evaluate the Fed's policy outlook following latest data releases and Fedspeak.
Gold rises toward $2,700, hits two-week top
Gold continues to attract haven flows for the fifth consecutive day and rises toward $2,700. XAU/USD continues to benefit from risk-aversion amid intensifying Russia-Ukraine conflict. Investors keep a close eye on geopolitics while waiting for PMI data releases.
Ripple surges to a new yearly high; XRP bulls aim for three-year high of $1.96
Ripple extends its gains by around 10% on Friday, reaching a new year-to-date high of $1.43 and hitting levels not seen since mid-May 2021. The main reasons behind the rally are the announcement that the US SEC's Chair Gary Gensler will resign and the launch in Europe of an XRP ETP by asset management company WisdomTree.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.