XAUUSD Is Quite Far From $2000 Level. How Will Price Of Gold React To Next Events?

XAUUSD Is Quite Far From $2000 Level. How Will Price Of Gold React To Next Events?

Looking at gold we can see price starting to form a range after a wild few days of trade.

Since last Thursday when Russia invaded Ukraine we have seen some amazing moves on gold as traders looked to the metal as a hedge. Last Thursday’s surge up to 1974.48 capped off a well-developed rally that started back in January. As the crisis developed and then unfolded buyers piled into gold. But Thursday was a mixed bag as risk recovered and this shock sent gold back down to 1903, setting off a rather solid bull trap.

Over the weekend tensions continued to develop on the Russian side and the word nuclear was mentioned. This set a strong gap to start the week as spot gold starting trading at 1916 today. Trade from the open hasn’t been confident and we’re still watching price slowly decline. This leads us to today’s chart.

After today’s gap, we can see two clear areas of support and resistance after the dust of last week and this morning’s open. Tensions between Russia and the west and their invasion of Ukraine are going to continue as the key factor. Break and close above resistance we will look for further higher prices. Break below support, we could see a new move back to the second slower trendline.

GOLD 4H

The post CFD Update: Gold starting to lock up after a wild three days of trade appeared first on Eightcap.

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Joseph Jeffriess, Market Analyst in Eightcap
Eightcap is one of the leading CFD brokers in the market, providing online trading services to a wide range of clients from around the world. They offer 1,000+ CFDs based on Forex, commodities, indices, shares, and cryptocurrencies. The well-established trading company was founded in Melbourne, Australia, in 2009, and is regulated by the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and the Securities Commission of The Bahamas (SCB).