Spot gold (XAU/USD) costs hit $1900 per troy ounce for the primary time since June 2021 on Thursday, taking its on-the-day features to greater than 1.5% as geopolitical tensions between Russia, Ukraine and NATO simmer, stimulating demand for safe-haven belongings. Gold now trades greater than 2.0% greater on the week, taking its two-week run of features to almost 5.0%.
Fears of an imminent Russian navy incursion into Ukraine have escalated in latest days, with studies of shelling within the war-torn Donbas area of Japanese Ukraine on Thursday sparking fears that Russia is seeking to create a pretext for navy motion, because the nation continues to amass troops close to the Ukrainian border.
A optimistic technical backdrop has coincided with the elevated safe-haven demand for gold; XAU/USD broke above a key long-term pennant construction on the finish of final week. This week it fell again to the $1850 space to check the outdated long-term pennant and, promisingly for the bulls, discovered sturdy assist. The bulls will now probably goal a transfer above $1900 and in the direction of the mid-2021 highs within the $1915 space.