Gold spent the first half of the week fluctuating in a relatively tight range above $1,920 but regained its traction after breaking above $1,950 on Thursday. XAU/USD needs to use $1,950 as support in order to extend its rebound, FXStreet’s Eren Sengezer reports.

Bullish tilt after the move above $1,950

“Investors grow increasingly concerned over the potential negative impact of a prolonged Russia-Ukraine conflict on global economic activity. A further escalation of geopolitical tensions should help the yellow metal limit its losses and vice versa.”

“The 20-day SMA and the Fibonacci 38.2% retracement of the latest uptrend seem to have formed a key technical level at $1,950. In case gold starts using that level as support, it faces an interim resistance at $1,965 (static level) before it can target $1,990 (Fibonacci 23.6% retracement) and $2,000 (psychological level).”

“XAU/USD could face renewed bearish pressure if it fails to hold above $1,950 and decline toward $1,920 (static level, lower limit of the consolidation channel). With a daily close below that level, the pair could test $1,900 (Fibonacci 61.8% retracement, 50-day SMA).”

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