Gold Skyrockets to $1,850 – Concerns About Ukraine Trigger Risk-off Sentiment - Forex News by FX Leaders
Gold - XAU/USD Chart

Gold Skyrockets to $1,850 – Concerns About Ukraine Trigger Risk-off Sentiment

Posted Wednesday, January 26, 2022 by
Arslan Butt • 2 min read
  • Gold has completed the 23.6% Fibonacci retracement on the technical front at $1,838
  • Russia expressed grave concerns on Tuesday, after the United States placed 8,500 troops on alert
  • These geopolitical tensions are causing uncertainty in the market, forcing investors to take shelter in safe-havens
On Wednesday, the precious metal, gold, is trading at 1,848, having dropped after testing a high of $1,853. Gold struck a more than two-month high on Tuesday, as geopolitical worries about Ukraine pushed investors towards safe havens, such as bullion, ahead of the Federal Reserve meeting, which could provide clues about the Fed’s plans to tighten monetary policy.

Gold Rate Live

 

XAU/USD
Spot gold rose by 0.5 percent, to $1,852.03 per ounce, having reached its highest level since November 19. Gold futures in the United States finished 0.6 percent higher at $1,852.50.Russia expressed grave concern on Tuesday, after the United States placed 8,500 troops on alert, ready to deploy to Europe in the event of an intensification in the Ukraine crisis.

Dmitry Peskov, a Kremlin spokesman, accused Washington of inflaming tensions over Ukraine, reiterating Moscow’s line that the conflict is being driven by US and NATO actions, rather than its buildup of tens of thousands of soldiers near the Ukrainian border.

Western countries accuse Russia of plotting another strike on Ukraine, which it penetrated in 2014. Moscow denies any plans to invade Ukraine again, but warns that it may resort to unspecified military action, unless certain demands, along with a NATO promise not to admit Kyiv, are met.

According to Peskov, President Vladimir Putin will meet with French President Emmanuel Macron and Ukrainian President Volodymyr Zelenskiy this week.

Russia is expecting a written reply from the United States this week, in response to its list of security demands, including some that Washington has dismissed as non-starters. According to Peskov, the US troop alert did not affect negotiations, because the current phase of talks had been concluded.

These geopolitical tensions are causing uncertainty in the market, forcing investors to take safe-haven shelter. Thus, investors are increasing their holdings in safe-haven asset gold. As a result, the higher gold demand is raising its prices.

Gold - XAU/USD Chart

Gold (XAU/USD) Technical Outlook

On the technical front, gold completed the 23.6% Fibonacci retracement at $1,838, and bounced off to trade at the 1,847 level. Currently, the immediate support for gold remains at the 1,844 level, and a break below this could lead its prices lower, towards 1,838.

An additional bearish breakout could open additional room for selling until the 1,832 level. On the bullish side, the precious metal, gold, may find the next resistance at 1,855, and a break above could lead gold towards 1,865. Good luck!

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