Gold is subdued on a choppy trading session, clinging to the $1,900 mark amongst an overall upbeat market mood, following a series of sanctions imposed by the US to Russia, which appeared to be measured, an excuse for investors to seek riskier assets. XAU/USD is trading at $1,907 at the time of writing.

On a higher time frame the projections are expected that gold has witnessed a weekly close above the $1,877 high of November and the spotlight turns to the June 2021 high and retracement resistance at $1,917/23. Above here should add momentum to the rally to confirm a base has indeed been established to raise the prospect of a move back to the $2,075 record high.

During geopolitical conflicts, gold is one of the sought safe-havens by investors, meandering around the $1900 mark for the last five days. Worth noting that XAU/USD buyers pushed the yellow-metal price above Pitchfork’s uptrend channel while breaking a nine-month-old trendline in the process, leaving the last year’s November 16 daily high at $1877 a crucial support for XAU bulls to keep the upward bias.

That said, XAU/USD’s first resistance is $1900. A decisive break would expose June 1, 2021, a daily high at $1,916. Breach of the latter will expose January 2021 highs at $1,959, which once cleared could pave the way towards $2,000.

The Technical Confluences Detector shows that gold price is heading south, testing the SMA5 one-day support at $1,893 and the previous low four-hour.

If the latter is breached decisively, then the confluence of the pivot point one-day S1, Fibonacci 23.6% one-week and the previous day’s low at $1891 will come into play.

Deeper declines will expose strong support at $1,885, the pivot point one-month R2, below which floors will open up towards the Fibonacci 38.2% one-week at $1,880.

Gold Bullish On Higher Time Frame After a Bearish Reversal

Feb 23 2022