- Gold aims for a 2.06% gain on the week, courtesy of geopolitical jitters amid Fed speaking ignored by market players.
- The conflict in Eastern Europe gives signs of no de-escalation as Russian President Putin decided to oversee nuclear drills in the weekend.
- XAU/USD Technical Outlook: Despite finishing the week on the wrong foot, still upward biased, as XAU bulls prepare to probe $1900.
Gold (XAU/USD) slides as the New York session winds down and fails to cling to the $1,900 mark pierced on Thursday, so far in the week up 2.02%. At the time of writing, XAU/USD is trading at $1,897. A risk-off market mood kept the safe-haven gold bid through the majority of the week, with four days of gains and one day in the red.
Russia/Ukraine update
In the meantime, the Russia Ukraine narrative keeps grabbing the headlines. In the last couple of hours, tensions have remained unchanged. Ukraine’s intelligence reported that Russian special forces placed numerous explosive devices around local infrastructure in separatist-held territories in Donetsk. Meanwhile, the Russian Communist leader Zyuganov said that Russian President Vladimir Putin would announce a decision on Donbas on February 20.
Furthermore, late in the day, a Senior US admin official said that Russian President Putin’s decision to oversee nuclear drills on Saturday is “escalatory.” In contrast, other US officials privately urged Ukraine President Zelensky to stay put, as concerns of a possible incursion rise, as reported by CNN’s reporter.
That said, what happened to gold? During Friday’s session, the yellow metal consolidated around the $1,886-$1,900 area, amongst exchanges of statements in news media between Russia, Ukraine, and NATO countries, keeping uncertainty around the current situation in Ukraine.
The US 10-year Treasury yield fell five basis points sits at 1.925% in the bond market. At the same time, the US Dollar Index, a gauge of the greenback’s value against a basket of its rivals, edges up 0.31%, at 96.10, reflecting the increased demand for the US dollar amid geopolitical concerns.
XAU/USD Price Forecast: Technical outlook
On Thursday, the non-yielding metal pierced the $1,900 mark for the first time since last June. However, XAU bulls’ failure to record a daily close left the yellow metal subject of a mean reversion move.
On Friday, XAU/USD consolidated in a $14.00 range. Should gold close within the range, a move towards February 15 daily high, resistance/support at $1,879 is on the cards, as XAU bulls prepare for an assault of $1,900. If that scenario plays out, XAU/USD first resistance is $1,900. The breach of it opens the door towards $1,916, which, once cleared, will expose January 2021 highs at $1,959.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.