- Gold consolidates within the range of the last three trading days.
- The aggressive outlook of the Fed and the increase in yields limit the rise of the yellow metal.
- Increased Russian hostilities in Ukraine and deadlock in peace talks offer support for gold.
The price of Gold (XAU/USD) consolidates within a range between $1,922 and $1,937 during the European session on Tuesday. This move is within the range of the last three trading days. At time of writing, gold is trading at $1,929, down 0.34% on the day.
After halting the recent decline last Wednesday from the highs of $2,070 reached last March 8, the price of gold has remained within a range of around $50 awaiting further directional clues.
Amid the aggressive outlook of the Fed and the confrontation between Russia and Ukrainethe gold price is having a hard time finding a clear direction.
The price of gold has been trapped in this range following the Fed’s decision to raise rates by 25 basis points and after Chairman Powell sounded optimistic about the economy.
Aggressive comments from Fed officials boosted yields and allowed the dollar to continue to strengthen against other assets, which limits the rise of the yellow metal. The benchmark 10-year US Treasury bond yield is at its highest level since May 2019, above 2.3%.
On the other hand, the increase in Russian hostilities in Ukraine and the stagnation of the peace talks maintain support for the fall of the price of gold.
Sentiment could improve after The Associated Press (AP) reported comments by Ukrainian President Volodymyr Zelenskyy, when he said: “Late on Monday was willing to discuss a commitment by Ukraine not to seek NATO membership in exchange for a ceasefirethe withdrawal of Russian troops and a guarantee of Ukraine’s security”.
The price of gold is left at the mercy of further progress in finding a diplomatic solution to the conflict between Russia and Ukraine amid the lack of high-level macroeconomic releases on Tuesday.
gold technical levels
Source: Fx Street
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