Gold continues to find demand amid the ongoing Russia-Ukraine crisis. The technical picture suggests that XAU/USD remains bullish in the near-term, pointing to additional gains towards USD 1,975.
US inflation data and geopolitical headlines to drive next week’s action. On Wednesday, the US Bureau of Labor Statistics will release the February Consumer Price Index (CPI) data.
Unless there is a negative surprise, investors should continue to price in a hawkish Fed policy outlook. Another leg higher in the US T-bond yields on a strong CPI print could limit the yellow metal’s gains.
The yellow metal should continue to find demand as a traditional safe-haven next week unless investors see convincing signs of a de-escalation of the Russia-Ukraine conflict.
On the upside, USD 1,975 (static level, February 24 high) aligns as the first hurdle before the precious metal could target the all-important USD 2,000 level.
As long as USD 1,920 support (static level, ascending trend line) holds, sellers are likely to remain on the sidelines. Below USD 1,920, next support is located at USD 1,900 (psychological level) before USD 1,885 (20-day SMA).
Tags Gold Russian invasion of Ukraine
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