- Growing concerns related to the Russian invasion of Ukraine keep investors in cautious mode.
- Global stock markets are mixed, but government bond yields are on the rise.
- Gold price is neutral but technical signs point to another move lower.
Gold price is trading around $1,925 a troy ounce at the start of the American session on Monday, retaining modest intraday gains in a risk averse environment. Market sentiment is sour amid ongoing tensions between Russia and Ukraine. Moscow’s attacks increased over the weekend, and peace talks are a big opportunity now. That said, safe-haven assets like gold are making modest intraday gains as financial markets appear to be on pause ahead of a new catalyst.
Asian and European indices are trading mixed, but government bond yields have risen, with a 10-year US Treasury yield reaching as high as 2.20% amid concerns that inflation will continue to rise regardless of expectations. central bank measures. Oil prices resumed their gains after Russian Deputy Prime Minister Novak said that the price of crude could rise to $300 a barrel if Russian oil is rejected, but that is unlikely. The price of gold may recover the rise if the news hits Wall Street.
Gold Price Technical Outlook
XAUUSD is stuck around the 50% retracement of the Jan/March move, with further downside potential. The yellow metal is rallying sellers around the flat 20-day SMA, while daily momentum is heading firmly lower within negative levels.
The price of gold bottomed last week at $1,895 a troy ounce, just ahead of the 61.8% retracement of the mentioned move at $1,890.60, a critical support level. On the other hand, the 38.2% retracement is around $1,960, where selling interest has been strong.
Technical charts suggest a drop, while fundamentals suggest a rise. The aforementioned Fibonacci levels are critical as XAUUSD could find its way on a clear breakout of any of them.
gold technical levels
Source: Fx Street
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