- Gold hits one-week highs above $1,950 on Thursday, the focus remains on geopolitical risk.
- Now the focus shifts to whether XAU/USD can follow the rally towards $2,000, ahead of the US Fed and PMI speeches.
The prices of Gold (XAU/USD) have made new highs for more than a week above the $1,950 level, despite a slightly stronger US dollar, higher US yields and the subdued tone around the stock and commodity markets. As usual, a slightly stronger US dollar would weigh on gold, denominated in dollars, by making it more expensive for foreign currency holders. Therefore, Investors seem to be buying gold as a hedge against major geopolitical risk events in Europe.
The Secretary General of NATO, Jens Stoltenberg, will participate in a press conference after a extraordinary meeting of NATO heads of state early in the day. At that meeting, as well as at Thursday’s EU Council meeting, Western nations expected to announce new sanctions against Russia and support for Ukraine. One of the key issues is whether the EU will ban Russian oil, with early news suggesting the bar for it is high.
Meanwhile, the situation on the ground in Ukraine gives no reason for optimism, as the war has apparently entered a stalemate and the Ukrainians are now accusing the Russians of using white phosphorous in the east amid deadlocked talks. peace. Investors clearly see gold as a good value at current levels given these risks. In addition, the XAU/USD was able to rise convincingly back above its 21-day moving average for the first time since mid-month.. Ahead of further speeches from Fed members and US preliminary PMIs for March, the focus is on whether the precious metal will be able to move towards the $2,000 level.
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
