The Gold Index (XAU/USD) hit $1900 per ounce for the first time since June 2021 on Thursday, taking its on-the-day gains to more than 1.5% as geopolitical tensions between Russia, Ukraine and NATO simmer, stimulating demand for safe-haven assets.
Gold now trades more than 2.0% higher on the week, taking its two-week run of gains to nearly 5.0%. Fears of an imminent Russian military incursion into Ukraine have escalated in recent days.
Reports of shelling in the war-torn Donbas region of Eastern Ukraine on Thursday are sparking fears that Russia is looking to create a pretext for military action, as the country continues to amass troops near the Ukrainian border.
A positive technical background has coincided with the increased safe-haven demand for gold; XAU/USD broke above a key long-term pennant structure at the end of last week.
This week it fell back to the $1850 area to test the old long-term pennant and, promisingly for the bulls, found strong support. The bulls will now likely target a move above $1900 and towards the mid-2021 highs in the $1915 area.
Tags bulls demand gold prices Nato resistance Russia-Ukraine military conflict Russian-Ukranian crisis safe haven support tanks Ukraine
Check Also
Bitcoin Faces Continued Pressure Amid Fed’s Hawkish Stance
Bitcoin traded marginally lower on Monday, reflecting ongoing caution among investors as macroeconomic uncertainties and …