Gold Price Forecast: Bulls pushing gold above $1,930.00

XAU/USD Current price: $1,931.88

• Russian escalating attack on Ukraine spur panic in financial markets.
• Wall Street resumed its decline government bonds surge amid fly to safety.
• XAU/USD accelerates its advance and is poised to test the $2,000 threshold.

Spot gold met buyers amid a souring market mood and surged to a daily high of $1,934.93 a troy ounce, pressuring such a high at the time being. The war escalation triggered by the Russian invasion of Ukraine continues to push investors into safety. After some quietness during the early Asian session, renewed attacks on major Ukrainian cities put pressure on global indexes and, in turn, fueled demand for safe-haven assets.

Stocks are down, but also government bond yields. Inflation-related concerns have been put aside as the market retrieves bets for aggressive tightening in Europe and the United Kingdom, as policymakers from the respective central banks expressed concerns about the war, creating a new point of uncertainty about the economic future.

The second round of talks between Ukraine and Russia will take place on Wednesday, March 2. It seems unlikely those will reach good port, as President Vladimir Putin said the invasion would continue until he achieves his goals.

Gold price short-term technical outlook

 XAU/USD daily chart shows that the pair has posted a third consecutive higher high, while technical indicators maintain their bullish slopes, despite being in overbought territory. Meanwhile, the 20 SMA accelerated its advance above the longer ones and below the current level, now at around 1,865.

The near term picture is also bullish, as, in the 4-hour chart, the bright metal is extending its advance above all of its moving averages, as technical indicators reach fresh highs within positive levels, maintaining their ascendant slopes.

Support levels: 1,925.30 1,912.00 1,903.40  

Resistance levels: 1,938.10 1,952.20 1,966.10

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