Gold surges to $1,913 amid increasing market volatility and risk

XAU/USD (Gold) commodity starts the week positively, trading at $1,906.70, up by 2.11% on the day.
Increased market volatility and rising risk led to a surge in demand for safe-haven assets including Gold.
Technical indicators, such as the daily 20-SMA and 50-SMA, suggest a potential bullish outlook.
Due to risk aversion, US yields have reached their lowest levels in recent months.

Daily price movements

XAU/USD (Gold) commodity opens the first day of the week at $1,867.24, with an intraday high of $1,913.13 and a low of $1,867.24. Gold trades at $1,906.70 at the press time for the first time since February 3rd, 2023, up by 2.11% on Monday.

The sharp drop in US yields is considered the primary catalyst for the rise in the price of Gold. The US 10-year yield has fallen to 3.41%, approaching its year-to-date lows from its previous level above 4.0%. Meanwhile, the 2-year yield reached its highest since 2008 and fell to its lowest intraday level since October 2022, at 4.00%.

Following the collapse of Silicon Valley Bank (SVB), concerns have arisen about the state of the banking sector, which has caused a decrease in expectations for a rate hike by the Federal Reserve (Fed). Investors are watching the potential impact of this crisis on economic data.

Key economic events

The upcoming US February Consumer Price Index (Feb) on Tuesday and US Retail Sales (Feb) on Wednesday are expected to be critical for monetary expectations and is also closely monitored.

However, following the unexpected SVB collapse, markets are now pricing in a more relaxed stance by the Fed.

Technical view

Technical indicators suggest a potential bullish outlook for Gold in the short term. The daily 20-SMA and 50-SMA are at $1,838.83 and $1,873.21, respectively, indicating a possible bullish trend. The RSI(14) is at 64.970, indicating potential bullish momentum.

Resistance levels for Gold are at $1,884.08, $1,898.25, and $1,926.40, while support levels stand at $1,841.76, $1,813.61, and $1,799.44. The daily pivot point is $1,855.93.

Technical levels

XAU/USD

Overview
Today last price	1904.79
Today Daily Change	34.87
Today Daily Change %	1.86
Today daily open	1869.92

Trends
Daily SMA20	1835.48
Daily SMA50	1871.07
Daily SMA100	1810.46
Daily SMA200	1775.06

Levels
Previous Daily High	1870.09
Previous Daily Low	1827.77
Previous Weekly High	1870.09
Previous Weekly Low	1809.46
Previous Monthly High	1959.8
Previous Monthly Low	1804.76
Daily Fibonacci 38.2%	1853.92
Daily Fibonacci 61.8%	1843.94
Daily Pivot Point S1	1841.76
Daily Pivot Point S2	1813.61
Daily Pivot Point S3	1799.44
Daily Pivot Point R1	1884.08
Daily Pivot Point R2	1898.25
Daily Pivot Point R3	1926.4

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