6:10 PM · 29 March 2022

US does not trust Russia's retreat - gold rebounds

According to US intelligence, recent statements from Russia pointing to a withdrawal from Kiev does not mean that Moscow is willing to conclude a ceasefire. The US sees it as a tactical delay which will enable Russians to regroup and prepare for a second phase of the offensive, which would be stronger and more coordinated. American intelligence also indicates that the Kremlin is concentrating additional troops inside Russia.

Investors have got used to the topic of war, but positive news are quickly discounted. On the other hand, in some markets, little remains of the positive tone which followed after the latest news from Russia. Gold clearly bounced back from the $ 1900-1910 zone. Of course, one can not exclude the possibility of re-testing this level, or even going below it. It is worth noting, however, that the price of gold did not drop significantly despite recent comments regarding the almost certain 50 bp rate hike in May.

GOLD - candlestick signal formed on the H4 interval - pinbar near the key demand zone. If the current candle closes above the opening of the previous candle, then a potential bullish engulfing pattern will appear on the chart, which could push the price towards $ 1,930 per ounce where the 50 MA is located. Source: xStation5

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