Gold (XAU/USD} is set to end the week with losses after reaching a daily high at $1974.48 on Thursday. Breaking news that Russia would be open to sit down and talk with the Ukrainian Government, increased appetite for riskier assets, to the detriment of save-haven assets, like precious metals and low yielder currencies. Said that XAU/USD remains beneath the $1900 handle, trading at $1892 at the time of writing. XAU/USD, in the last two days, rallied to a one-and-a-half-year high at $1,974.48 early Thursday but has plunged since then and so far failed to cling to the $1900 area. Worth noting that some investors are aware that the Russian Central Bank has some reserves in gold and booked profits ahead of reaching the $2,000 mark in fears that President Putin could use some of those to support the Russian ruble. 

XAU/USD price action in the week saw a move of $100 on Thursday, as Russia/Ukraine tensions increased. However, Thursday’s candle left a huge wick above the real body, demonstrating intense selling pressure mounted above  $1,909. That, alongside Friday’s price action, confirms a bearish harami pattern that would be validated once XAU/USD breaks the $1,878.09 support.

XAU/USD’s first support level would be February 24 daily low at $1,878.09. Breach of the latter would expose the 9-month-old resistance/support trendline around $1,850-55, and then a test of the 50-day moving average (DMA) at $1,829.76.

Bulls Gaining Ground Above $1874 Support

Feb 26 2022