Gold Price Analysis: XAU/USD momentum eases for now after stop run sends prices above $1840


  • Gold momentum has waned in recent trade, with the precious metal consolidating at session highs just above $1840.
  • XAU/USD burst above resistance in the low-$1830s earlier in the session amid what appeared to be a stop run.

Spot gold (XAU/USD)’s upside momentum has waned in recent trade, with prices trading in more of a subdued manner near $1842 after bursting above resistance in the low $1830s and then subsequently $1840 for the first time in over two months. The speed of spot gold’s latest advances, especially between the $1830 to $1840 area, is suggestive of a stop run. With market participants amping up hawkish Fed bets in recent weeks, a theme that has weighed heavily on certain parts of the US equity market and sent real and nominal yields surging to multi-month/year highs, many were likely betting on weaker gold prices. Many traders short gold may have had their stop loss sat somewhere in the $1830s.

It is unlikely that spot gold can resist the advances of the US dollar and US real yields forever, and expectations for a very hawkish Fed in 2022 suggest continued upside risks for both. But gold is for now garnering safe-haven demand as geopolitical tensions surrounding Ukraine amp up, market commentators said. US Secretary of State Antony Blinken warned earlier in the day that Russia could attack Ukraine at very short and there are fears this could have a highly inflationary impact on the global economy via higher energy prices. Russia is a key gas supplier to Europe and a key global exporter of crude oil. With WTI at multi-year highs in the upper $80s and further energy price gains likely, investors may be buying gold as an inflation hedge.

XAU/Usd

Overview
Today last price 1841.45
Today Daily Change 27.70
Today Daily Change % 1.53
Today daily open 1813.75
 
Trends
Daily SMA20 1811.29
Daily SMA50 1807.16
Daily SMA100 1793.93
Daily SMA200 1803.53
 
Levels
Previous Daily High 1822.82
Previous Daily Low 1805.84
Previous Weekly High 1829.23
Previous Weekly Low 1790.43
Previous Monthly High 1830.39
Previous Monthly Low 1753.01
Daily Fibonacci 38.2% 1812.33
Daily Fibonacci 61.8% 1816.33
Daily Pivot Point S1 1805.45
Daily Pivot Point S2 1797.16
Daily Pivot Point S3 1788.47
Daily Pivot Point R1 1822.43
Daily Pivot Point R2 1831.12
Daily Pivot Point R3 1839.41

 

 

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