A massive risk-on reversal that occured yesterday pushed gold price back below $2,000 per ounce. News reports saying that Ukraine is willing to compromise if Russia compromises as well boosted risk sentiment and triggered outflows from safe haven markets. Whether those reports translate into anything of matter may be known today as Foreign Ministers of Ukraine and Russia meet in Turkey. This is the first such high-level meeting since the beginning of the invasion and it has already begun. Apart from that, gold may also experience elevated volatility at 1:30 pm GMT as US CPI report for February will be released and another acceleration is expected.
Taking a look at GOLD chart at D1 interval, we can see that advance was halted after test of the 161.8% exterior retracement of June-August 2021 correction in the $2,060, that also more or less coincides with highs from 2020. Precious metal pulled back below $2,000 and if today's Ukraine-Russia meeting produces an optimistic outcome, further drop cannot be ruled out. The lower limit of the Overbalance structure at $1,932 per ounce is the first near-term support to watch in such scenario.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
