A massive risk-on reversal that occured yesterday pushed gold price back below $2,000 per ounce. News reports saying that Ukraine is willing to compromise if Russia compromises as well boosted risk sentiment and triggered outflows from safe haven markets. Whether those reports translate into anything of matter may be known today as Foreign Ministers of Ukraine and Russia meet in Turkey. This is the first such high-level meeting since the beginning of the invasion and it has already begun. Apart from that, gold may also experience elevated volatility at 1:30 pm GMT as US CPI report for February will be released and another acceleration is expected.
Taking a look at GOLD chart at D1 interval, we can see that advance was halted after test of the 161.8% exterior retracement of June-August 2021 correction in the $2,060, that also more or less coincides with highs from 2020. Precious metal pulled back below $2,000 and if today's Ukraine-Russia meeting produces an optimistic outcome, further drop cannot be ruled out. The lower limit of the Overbalance structure at $1,932 per ounce is the first near-term support to watch in such scenario.
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Source: xStation5
