Markets saw explosive moves across the board on yesterday’s news that Russia was invading Ukraine, and not surprisingly, gold was one of the biggest gainers early in the day as traders piled into the safe haven asset.
However, as the day preceded, markets saw a sharp reversal, with everything from oil to stock indices unwinding their initial moves. Gold saw a similar reversal of its own: after trading nearly up to $1975 in early European trade, the yellow metal ultimately fell nearly 100 points to a low of $1880, finishing lower on the day and putting in its largest one-day range since November 2020.
Looking ahead, the headlines out of Ukraine remain highly fluid, but they are currently pointing to the potential for a relatively resolution to the conflict. After such a dramatic intraday reversal yesterday, a quick end to the military conflict in Eastern Europe could see gold fall further, with the initial level to watch coming around previous-resistance-turned-support at $1870, followed by the rising 50-day EMA near $1840.
Meanwhile, a re-escalation of the conflict in Ukraine could boost gold again, though traders may be hesitant to buy in aggressively unless the yellow metal can close above resistance in the $1960 area.
However, as the day preceded, markets saw a sharp reversal, with everything from oil to stock indices unwinding their initial moves. Gold saw a similar reversal of its own: after trading nearly up to $1975 in early European trade, the yellow metal ultimately fell nearly 100 points to a low of $1880, finishing lower on the day and putting in its largest one-day range since November 2020.
Looking ahead, the headlines out of Ukraine remain highly fluid, but they are currently pointing to the potential for a relatively resolution to the conflict. After such a dramatic intraday reversal yesterday, a quick end to the military conflict in Eastern Europe could see gold fall further, with the initial level to watch coming around previous-resistance-turned-support at $1870, followed by the rising 50-day EMA near $1840.
Meanwhile, a re-escalation of the conflict in Ukraine could boost gold again, though traders may be hesitant to buy in aggressively unless the yellow metal can close above resistance in the $1960 area.