Gold Price is looking for direction at around $2,000 amid multiple first-tier events.
The ECB has announced hawkish measures, and has expressed concerns about the ongoing Eastern Europe conflict.
Skyrocketing US inflation reached yet another multi-decade high in February.
The Gold Index is little changed post-Wall Street’s opening, hovering just above the $2,000 threshold, as gold investors pay close attention to European Central Bank President Lagarde’s words.
After the monetary policy announcement, Christine Lagarde gave a press conference, trying to explain why policymakers decide to accelerate the pace of tightening through reducing the APP program.
Lagarde also highlighted the increased risk created by the Russian invasion of Ukraine. Peace talks between the two countries broke down as the two sides were unable to agree on a ceasefire.
Earlier in the day, the European Central Bank has released its monetary policy decision. As widely anticipated, the central bank has left rates unchanged. However, policymakers noted that if “the medium-term inflation outlook changes and financing circumstances become incompatible with further progress toward our 2% target, we will alter our net asset purchase schedule in terms of magnitude and/or length.”
A hawkish stance sent EUR higher, providing support to Gold Price, which reached an intraday peak of $2,009.09 a troy ounce, although the metal quickly retreated amid ECB President Lagarde expressing concerns about the war effect on local growth and inflation
Additionally, the US published the February Consumer Price Index, which hit a multi-decade high of 7.9% YoY as expected. The core reading surged to 6.4%, also as anticipated by the market.
Technically speaking, gold price is stuck around the 23.6% retracement of its 2022 rally at around $2,002.00, still unable to find fresh directional impetus.
Technical readings in the daily chart maintain the risk skewed to the upside, as technical indicators are resuming their advances within positive levels after correcting extreme overbought conditions.
At the same time, a bullish 20 SMA keeps advancing well below the current level, currently converging with the 50% retracement of the aforementioned rally at $1,926.
A slump towards the latter seems out of the table at the time being, particularly considering increased tensions in the geopolitical front.
On the other hand, and beyond the daily high, XAUUSD could extend gains towards $2,025, en route to 2,049. Strong support comes at $1,955, the 38.2% retracement of the said rally.
Tags ceasefire ECP failed talks Gold hawkish language inflation monetary policy Russian invasion of Ukraine
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