- Gold prices fell more than $50 from the daily high.
- XAU/USD is now up modestly after a sharp correction.
- US dollar remains strong, US yields cap gold’s rally.
gold prices they see a sharp correction from the $1,974 highs to the $1,920 zone. It is now approaching $1,940. Volatility remains at extreme levels in metals.
Stock prices are clinging to heavy losses around the world amid the escalating conflict in Ukraine. Russian troops invaded Ukraine on Thursday and sparked a spike in commodity prices, including gold.
During the last few hours, US yields moved towards daily highs supporting the correction in gold prices.
Above the $1,965 zone, gold lost momentum, and after some stabilization near $1,960, XAU/USD quickly corrected to $1,912. A breakout to the downside could trigger a deeper pullback. The next support is at $1,890.
On the upside, immediate resistance is located at $1,940; and a break higher could easily send XAU/UD to $1,950. If the rally continues, a consolidation above $1,965 should keep the path clear for $2,000.
Technical levels
Source: Fx Street
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