The Gold Spot is currently trading witihin healthy ascending rectangle and is expected to reach the 1967-1970 resistance in the following sessions
As I mentioned during my last week's commentary, the Gold Spot (XAUUSD) is currently strongly affected by the main fundamental event which is Russia-Ukraine conflict. As investors use the Gold, among other safer investments such as US Treasury Bonds, CHF..., as safe haven asset, the Gold Spot managed to trade with huge gains throughout the end of the last week and throughout today's US session (+39,220 throught today's session).
During the last week, particulary on 24th February early EU session, I made the 17 point profit, as the Gold Spot managed to breach the 1907-1910 resistance, closing my order at 1930.90 (my last idea can be found among the Related Ideas section).
The Gold Spot is currently strongly correlated with DX, as investors move their capital away from RUB and other riskier investments, which is adding huge buying pressure on DX (DX- Dollar compared to six other currencies: Euro , Swiss Franc , Japanese Yen, Canadian dollar , British pound, and Swedish Krona; it is also worth noting that DX is currently on 19 month high's).. The US Bonds also represent safe asset for investors as US10Y traded from 1.904% to 1.719% in the last two days.
Considering all I have written above, and the fact that the XAUUSD is currently trading within ascending rectangle, I see no other way for Gold, than to once again reach the 1967-1970 resistance. If 1950 resistance gets broken, which I strongly expect, as I don't see the Russia-Ukraine tensions calming down any time soon, I will engage buying order pursuing the previously mentioned resistance, aiming for the 15-17 Points profit. It is also worth mentioning that, as I always remind that the Gold usualy repeat it's cycles, the few last times the Gold managed to breach the 1950 resistance, Price Action managed to reach the 1967-1970 resistance, particullary during the 24th-27th July 2020, 14th-17th August 2020 and 27th-28th August 2020 time period.
As I mentioned during my last week's commentary, the Gold Spot (XAUUSD) is currently strongly affected by the main fundamental event which is Russia-Ukraine conflict. As investors use the Gold, among other safer investments such as US Treasury Bonds, CHF..., as safe haven asset, the Gold Spot managed to trade with huge gains throughout the end of the last week and throughout today's US session (+39,220 throught today's session).
During the last week, particulary on 24th February early EU session, I made the 17 point profit, as the Gold Spot managed to breach the 1907-1910 resistance, closing my order at 1930.90 (my last idea can be found among the Related Ideas section).
The Gold Spot is currently strongly correlated with DX, as investors move their capital away from RUB and other riskier investments, which is adding huge buying pressure on DX (DX- Dollar compared to six other currencies: Euro , Swiss Franc , Japanese Yen, Canadian dollar , British pound, and Swedish Krona; it is also worth noting that DX is currently on 19 month high's).. The US Bonds also represent safe asset for investors as US10Y traded from 1.904% to 1.719% in the last two days.
Considering all I have written above, and the fact that the XAUUSD is currently trading within ascending rectangle, I see no other way for Gold, than to once again reach the 1967-1970 resistance. If 1950 resistance gets broken, which I strongly expect, as I don't see the Russia-Ukraine tensions calming down any time soon, I will engage buying order pursuing the previously mentioned resistance, aiming for the 15-17 Points profit. It is also worth mentioning that, as I always remind that the Gold usualy repeat it's cycles, the few last times the Gold managed to breach the 1950 resistance, Price Action managed to reach the 1967-1970 resistance, particullary during the 24th-27th July 2020, 14th-17th August 2020 and 27th-28th August 2020 time period.
