Gold cheers the market’s rush for risk-safety while ticking up to refresh multi-day peak around $1,880 ahead of Tuesday’s European session. Fears of the imminent Russian invasion of Ukraine join chatters surrounding faster rate hikes by the Fed to direct traders towards gold.

The global risk sentiment took a hit after the US National Security Advisor Jake Sullivan warned on Friday that Russia could invade Ukraine before the end of the Winter Olympics in China on February 20.

Bulls, however, seemed unaffected by signs of stability in the equity markets and even shrugged off the overnight US dollar strength, which tends to undermine the dollar-denominated commodity.

From a technical perspective, the overnight positive move confirmed a near-term bullish breakout through a downward sloping trend-line extending from June 2021 swing high. The subsequent price action validates the constructive outlook and supports prospects for a further near-term appreciating move. Hence, some follow-through strength towards an intermediate resistance near the $1,888 area, en-route the $1,900 mark, remains a distinct possibility. That said, RSI on the daily chart has moved on the verge of breaking into the overbought territory and warrants some caution for aggressive bullish traders.

On the flip side, the $1,868-$1,867 region now seems to protect the immediate downside ahead of the descending trend-line resistance breakpoint, around the $1,858 area. Any further decline would now be seen as a buying opportunity and is more likely to remain limited near the $1,850-$1,848 horizontal zone. A convincing break below the latter might trigger some long-unwinding trade and accelerate the corrective pullback towards the next relevant support near the $1,832-$1,830 region.

GOLD Likely to Hit $1900 on Geo-Political Tensions

Feb 15 2022

Stop Loss -0.53%

Holding time 4d5hr

1900.00

Entry price

1910.00

Stop loss price