Gold Hovers Around $1900 Amid Improved Market Mood

Gold is subdued on a choppy trading session, clinging to the $1,900 mark amongst an overall upbeat market mood, following a series of sanctions imposed by the US to Russia, which appeared to be measured, an excuse for investors to seek riskier assets. XAU/USD is trading at $1,907 at the time of writing.

Safe-haven assets felt the market sentiment swing, as shown by the US Dollar Index, falling 0.07%, sitting at 95.99. Nevertheless, the US 10-year Treasury yield uptick five basis points, sitting at 1.991%, putting a lid to the upward move by the non-yielding metal.

EU Ambassadors approved sanctions on Russia, and US Secretary Blinken said that the 24 February meeting with Russian Foreign Minister Lavrov makes no sense.

Alongside sanctions imposed by the US, Canada, Australia, and Japan, added to the list of countries imposing bans to Russia.

It was reported that Ukraine will introduce a state of emergency within all Ukraine regions, ex-Donetsk/Luhansk, for 30 days, and could be further extended for the same amount. The US economic docket featured Tier-3 macroeconomic data, mainly ignored by market players.

During geopolitical conflicts, gold is one of the sought safe-havens by investors, meandering around the $1900 mark for the last five days. Worth noting that XAU/USD buyers pushed the precious metal price above Pitchfork’s uptrend channel while breaking a nine-month-old trendline in the process, leaving the last year’s November 16 daily high at $1877 a crucial support for XAU bulls to keep the upward bias.

XAU/USD’s first resistance is $1900. A decisive break would expose June 1, 2021, a daily high at $1,916. Breach of the latter will expose January 2021 highs at $1,959, which once cleared could pave the way towards $2,000.