Gold Climbs On Rising Russia-Ukraine Tension

Fundamental Analysis

* Safe-Haven Bid: The gold which traded against the dollar have soared significantly following safe haven demand over heightened tensions over Russia and Ukraine. Following latest development, Moscow lowered the threshold for nuclear retaliation over Ukrainian attacks. The move was in response to the U.S. reportedly authorizing the use of long-range missiles by Ukraine against Russia, which Moscow warned could mark a dire escalation in the conflict. Still, Russian Foreign Minister Sergei Lavrov said the country would do all it could to avoid nuclear war. But hostilities with Ukraine persisted, as both countries launched debilitating attacks against each other over the past week.

Technical Analysis

* Technical Breakout: Gold price was traded higher following prior breakout above the previous resistance level 2625.00. MACD which illustrate bullish momentum signal suggest the commodity to likely extend its gains.

* Resistance and Support: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards the level 2685.00. Conversely, a potential reversal is also to be expected and the price could head back towards 2625.00.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

With little significant U.S. economic data, investors are expected to focus on developments in the Middle East conflict and Russia-Ukraine tensions to assess sentiment for the safe-haven commodity.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on US data, geopolitical conflicts, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.