Gold testing 1900-1920 area, waiting for price correction after geopolitical risks recede

Brian Wang Independent Analyst

News about the conflict between Russia and Ukraine continued to be updated over the weekend. For now, although the geopolitical risks have not eased, the two sides' stated attitude to avoid escalating the situation is helping to stabilize market sentiment. If the conflict between the two sides is eased, it could put a damper on gold and crude oil.

First, look at the daily chart of gold, the Elliott five-wave structure running from 1680 has reached its end, and the price of gold is now approaching the vital pressure area of 1910-1920.

Let's switch our eyes to the 4-hour chart. Although gold fell back immediately after hitting 1908 in the Asian session today, we can note that there is clear support near 1885. Traders who want to go short should also pay attention to the 30-period EMA. In this round of uptrend, when the price falls back to the 30-period EMA, it will immediately proceed to the next wave of climb with support points at 1822 and 1845, respectively.

If the price of gold can subsequently fall below both 1885 and the 30-period EMA, it will mean that the current uptrend has been successfully ended, and the bulls will retreat to the next support area in 1845-1855 range for defence.

Author

Brian Wang

Independent Analyst

Based in Melbourne, Brian joined Capital.com in 2022 as a Dealer.

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.