Rising risk of Russia invading Ukraine is triggering moves on the global financial markets. According to media reports, US intelligence sees the risk of invasion happening within the next few days. Meanwhile, Russia keeps insisting that observed build-up of troops near Ukrainian border is part of military drills and once those are over, soldiers will return to barracks. The only thing that seems certain for now is that markets will remain volatile until it becomes clear whether the war is coming or not.
A look at GOLD chart at H1 interval shows us that price of the precious metals experienced steep gains on Friday evening when it was reported that invasion on Ukraine may occur as soon as this week. Gold price jumped above $1,850 per ounce and later above $1,860 per ounce before halting advance in the $1,865 area. A small pullback occurred at the launch of a new week but price found support at the $1,853 support. Should bulls regain control now, a move towards the 127.2% exterior retracement of a recent downward correction cannot be ruled out. On the other hand, should price continue to move lower and breaks below the $1,853 handle, the next support in line can be found at the lower limit of local market geometry at around $1,844 per ounce.
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Source: xStation5
