Gold shoots higher as Russia invades Ukraine
Risk off trade is sending the safe haven Gold to a 13-month high, as Russia launches a full-scale invasion on Ukraine, in an attempt to demilitarize the country.
The Russia, Ukraine situation has quickly escalated from a diplomatic crisis into an all-out invasion with fears of a war of in Europe growing.
President Biden condemned the "unprovoked and unjustified" move by Putin and pledged a harsh response. He will meet with G8 leaders to decide the next steps.
Fears of a war in Europe and fears over what sanctions the West could impose on Russia are hitting risk sentiment driving safe haven demand.
Where next for Gold prices?
Gold has been trending higher, forming a series of higher highs and higher lows. It traded within an ascending channel dating back to early February and has broken out of the rising channel hitting a high of $1950.
The RSI have pushed into overbought territory, so some consolidation or even a move lower could be due to bring Gold back below 70 on the RSI, the level above which denotes overbought.
Buyers will look for a move over $1950 to target $1958 the January 2021 high.
Support can be seen at 1934 the upper band of the ascending channel. A break below here could bring $1915 the February 22 high into play ahead of $1890, yesterday’s low and $1878 the November high.