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Gold within Bullish Rectangle and is expected to reach 12M high

OANDA:XAUUSD   Gold Spot / U.S. Dollar
The Gold Spot ( XAUUSD ) is currently trading within Bulish Rectangle on Daily chart and is expected to reach 12 month high by the end of the week.

As I expected during my last week's commentary, the Price Action on Gold Spot, at the very beginning of the week, managed to reach the 1873,90-1877,90 resistance cluster, but failed to breach it and rebounded back to the 1850,90-1853,90 strong support zone . In aftermaths, due to strong fundamental effect, mostly pointing at Russia-Ukraine conflict and all correlated effects on the markets, the Price Action gained huge bullish momentum finnaly resulting in 40 Points gain on the Gold Spot throughout last week, with market closing below the 1.900,90 psychological barrier. The Russia-Ukraine conflict is hugely affecting markets, with investors running from riskier assets and investing in safe haven assets such as Bonds, Swiss Franc and commodities .
It is also worth noting that inflation is still on high levels, with Producer Price Index (which represents the leading indicator of consumer price inflation , month over month) resulting in 0,5% higher than expected and Retail Sales report almost doubled than forcasted.
Throught the following week, investors should seek eye on PCE Price Index, which could also show the strong inflation numbers and it could possibly affect the Feds plans on rasinig interest rates for 0,50 points at the March's meeting.

As I have written on my "Long term analysis on Gold Spot", the monthly XAUUSD chart Price Action formed two healthy Descending Triangles, of which one during the 2008 financial crisis and the other during COVID 19. The candlestick on February 2022 is currently long above the Descending Triangle hypotenuse, suggesting that if the Price Action do not reach the 1835,90 by the end of the month, we might expect the 1973,90 monthly chart resistance test and possibly Gold ATH.


The Gold is currently trading within bullish rectangle , with Price action failing to close above the 1.900,90 psychological barrier during last week. As the fundamental events are currently hughly affecting the markets (as I previously stated the investors are looking for safer assets to invest in) it is dangerous to engage any risky positions. The Price Action is still trading witihin bullish rectangle on daily's chart, and if I see the Price Action reaching the 1906,90-1909,90 resistance, there is big chance it will advance towards the 1930,90 resistance. I see this as good medium term position throught this week, as I will engage the buying order if h4 candlestick closes above previously mentioned resistance, placing the stop-loss at 1897,90. The Price action also might test the support (red rectangle on my chart), but I will not sell the market until the Russia-Ukraine conflict do not cool down.
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