Gold Rockets to $1,876: Everything You Need to Know
Gold Rockets, Gold prices closed at $1842.10 after placing a high of $1867.40 and a low of $1821.10. GOLD prices continued their bullish momentum and surged for the sixth consecutive session on Friday to reach their highest level since 19 November 2021. The demand for the safe-haven metal surged amid the concerns over rising inflation combined with the tensions between Russia and Ukraine.
On Friday, the White House national security adviser Jake Sullivan said that a Russian attack on Ukraine could begin any day now and would likely start with an air assault. However, Sullivan added that the White House did not claim that Putin had made a final decision on the matter. These comments were enough to spark safe-haven demand for gold in the market as geopolitical tensions escalated.
According to a report published by PBS, the United States believed that Russian leader Vladimir Putin had decided to invade Ukraine and had communicated those plans to the Russian military. The potential threat of war lifted the demand for safe-haven metal on Friday. Meanwhile, the US Treasury Yields on benchmark 10-year note also declined with massive losses to 1.91% and supported the strength of the precious metal. However; on the other hand, the US Dollar Index, which measures the greenback’s value against the basket of six major currencies, remained higher onboard at the 96.08 level.XAU/USD
On the data front, at 00:00 GMT, the Federal Budget Balance surged to 118.7B against the expected; 19.5B and weighed heavily on the US dollar. At 20:00 GMT, the Prelim UoM Consumer Sentiment declined to 61.7 against the forecast 67.2 and weighed the US dollar. The Prelim UoM Inflation Expectations surged to 5.0% against the previous 4%.
Furthermore, the Inflation Expectations for February increased to 5.0%; which indicated that the chances of slowing down inflation were not near, which also supported the rising prices of gold. It is because gold is considered a hedge against inflation, and increased inflation expectations pushed precious metal further higher to its 3-months peak.
Gold (XAU/USD) Technical Outlook, Gold Rockets
Gold Rockets, On Tuesday, XAU/USD broke through a downward trendline at $1,850; and now it’s heading towards the next resistance level of 1,876 level. On the daily timeframe, the XAU/USD has formed a “Three White Soldiers” pattern that’s supporting a strong uptrend.
On the further higher side, the breakout of 1,876 level can expose the precious metal; towards 1,902 level. On the lower side, the support prevails at 1,865 and 1,852 levels. The break below 1,852 exposes the selling trend until the 1,825 level.
The leading indicators RSI and MACD; are supporting a buying trend. Therefore; buy trades can be seen above 1,865 and vice versa. Good luck!
