Author: Amar – Technical Analysts
Gold shined last week, aided by a late-week rally after geopolitical tensions over an impending Russian invasion into Ukraine intensified. The risk of war has investors flowing into safe-haven assets, pushing gold to its highest level since November 19, as the United States and the United Kingdom warned its citizens to leave the country as soon as possible. US National Security Advisor Jake Sullivan spoke Friday, warning that Russian forces are now capable of mounting an attack with little notice.
The yellow metal rallied the most since October 2021 on Friday after receding probabilities over Fed’s 0.50% rate-hike, backed by softer US data, joined widespread fears of Russia’s immediate invasion of Ukraine. Elsewhere, the US warned over Moscow’s preparations for immediate war with Ukraine and urged all of its citizens to leave Kyiv. The UK and Eurozone policymakers also cited Russian preparations for an immediate war. However, the AFP News recently quoted Russian Leader Vladimir Putin saying to his French counterpart Emanuel Macron that Ukraine invasion claims are provocative speculation.
Technically, a horizontal area comprising multiple levels marked since May, near the price of $1873, will be a crucial upside barrier for the metal to cross ahead of targeting the $1900 threshold. Should gold buyers keep reins past $1900, the mid-2021 high surrounding $1917 will be in focus.