- For the week, XAU/USD is down 0.30% so far, breaking three consecutive weeks of gains.
- Risk appetite in the market and high yields on US Treasuries weighed on the non-yielding metal.
- XAU/USD Technical Outlook: Bias to the downside as a bearish pattern is looming on the harami candlestick chart.
Gold (XAU/USD) will end the week with a loss after hitting a daily high of $1,974.48 on Thursday. Breaking news that Russia would be willing to sit down and talk with the Ukrainian government increased appetite for riskier assets, to the detriment of safe-haven assets such as precious metals and low-yielding currencies. He said that XAU/USD remains below the $1,900 level, trading at $1,892 at the time of writing.
A busy week in global financial markets witnessed just how fragile market sentiment is. The conflict between Ukraine and Russia is not abating, and in fact, lately, reports say that attacks on the Ukrainian capital, Kiev, have increased. Ukraine’s ambassador to the US, Markarove, stated that Russia’s attack on Ukraine has been more brutal, while the mayor of Kiev reported explosions within minutes, which were heard near a power plant in Kiev.
Despite the above, the market mood remains upbeat, as shown by US stocks trading in the green, likely in month-end flows. However, the dollar falls 0.50% to 96.68, while the increase in US Treasury yields weighed on the non-yielding metal, with the 10-year note rising 1.5 bps to 1,988. %.
XAU/USD, over the past two days, rallied to a 1-1/2 year high at $1,974.48 early on Thursday, but has tumbled since then and has so far failed to hold on to the $1,900 area. It is worth noting that some investors are aware that the Russian Central Bank has some gold reserves and booked profits before hitting the $2,000 mark out of fear that President Putin may use some of them to back the Russian ruble.
The US economic docket reported some macroeconomic data earlier. January Durable Goods Orders beat expectations for a 1.6% m/m rise, while the Fed’s favorite inflation measure, annual PCE, topped the 6% level. That said, the odds of the Fed raising rates at the March meeting have increased. Later in the day, February UoM Consumer Sentiment remained above 60.0, but fell short of January’s readings.
Technical levels
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.
