Gold continues to find demand amid the ongoing Russia-Ukraine crisis. As FXStreet’s Eren Sengezer notes, the technical picture suggests that XAU/USD remains bullish in the near-term, pointing to additional gains towards $1,975.
US inflation data and geopolitical headlines to drive next week’s action
“On Wednesday, the US Bureau of Labor Statistics will release the February Consumer Price Index (CPI) data. Unless there is a negative surprise, investors should continue to price in a hawkish Fed policy outlook. Another leg higher in the US T-bond yields on a strong CPI print could limit the yellow metal’s gains.”
“The yellow metal should continue to find demand as a traditional safe-haven next week unless investors see convincing signs of a de-escalation of the Russia-Ukraine conflict.”
“On the upside, $1,975 (static level, February 24 high) aligns as the first hurdle before the precious metal could target the all-important $2,000 level.”
“As long as $1,920 support (static level, ascending trend line) holds, sellers are likely to remain on the sidelines. Below $1,920, next support is located at $1,900 (psychological level) before $1,885 (20-day SMA).”