GOLD - Accelerated growth. Rally due to geopolitics

Mar 1

XAUUSD , after breaking out of consolidation, closed Friday's session on a fairly positive note at 5275, indicating a possible continuation of growth. However, events over the weekend confirm the expected outcome...



On Saturday, February 28, there was a sharp escalation of the conflict in the Middle East, hinting at global economic problems and a possible intensification of the conflict in the medium term.
Expected market reaction: a huge increase in interest in hedging assets. Gold will surge sharply amid demand for safe havens at the opening of the session. The conflict is not short-term, and the transition to full-scale war could drive prices up quite aggressively.
In addition, the following data is expected this week: PMI data from ISM, Core Retail Sales, and the most important report for the Fed - NFP.
Technically, gold is entering a rally phase after breaking through the key resistance level of 5238. Gold has entered a new range of 5238-5453, which opens up growth potential to 5453-5600.

Resistance levels: 5453, 5542, 5597
Support levels: 5238, 5170, 5124

There is a high probability of the markets opening with a large gap. However, focus on key levels despite the gap. Consolidation above the key level could provide a good entry point with the aim of continuing growth. Be extremely careful with sales, but I do not recommend doing so in the near future!

Best regards, R. Linda!

Mar 3

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