Gold Declines As War Fears Recede

By Orbex

• Gold On 4 Hour Timeframe Is A UpTrend.
• Support And Resistance Levels On The XAU/USD : $1850 Support , $1875 Resistance

Gold has pulled back in the European stocks on Tuesday after hitting fresh eight-month highs recorded earlier in the Asian market, as correction and profit gains accelerated, as concerns about the worsening of the Ukrainian crisis slowed after the Russian defense ministry announced that some troops will return back from Ukraine borders to military bases.

The price of gold has fallen to $1,844.59, from the opening level of today’s transactions at $1,871.70, and hitting an intraday high of $1,1879.48, a level that was seen in June 2021.

Yesterday, gold rose by 0.65%, for the second consecutive daily gain, as buying of gold continued as a safe-haven, as concerns about the crisis between Russia and Ukraine escalated.

Igor Konashenkov, chief spokesman for the Russian Ministry of Defense, said that some military units of western and southern districts have started returning bases.

The withdrawal of some troops from Ukraine’s border is considered an important step towards easing the geopolitical confrontation between Russia and the West over Ukraine.

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Russian Foreign Minister Sergi Lavrov suggested to President Vladimir Putin that Moscow continue along the diplomatic path in its effort to extract security guarantees from the West, as tension soar over Ukraine.

Gold Technical Analysis & Forecast

The resistance level at $1879 stopped the XAUUSD from raising and returned the gold towards $1850. Currently, the support level at $1850 is preventing gold from falling, and any day candle closes below this level will push for further falling, but also if gold remains above the of $1850 it will be able to raise.

Gold Forecast Using Elliott Wave Theory

The gold was traded to break $1,860.00 level and to fall to the next support level at $1,844.00, and it’s expected to decline more during the next sessions to test mainly the areas of $1,825.15, noting that the persistence below $1,860.00 will keep the negative pressure.

Article by Orbex

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