Gold witnessed an intraday pullback from a fresh multi-month high touched earlier this Monday.Gold witnessed good two-way price moves through the early European session and was last seen trading modest losses, just below the $1,900 round-figure mark. News that US President Joe Biden and his Russian counterpart Vladimir Putin have agreed in principle to hold a summit on the Ukraine crisis raised hopes for a diplomatic solution to the East-West standoff. This, in turn, lifted the global risk sentiment and tempered demand for traditional safe-haven assets. This was seen as a key factor behind the commodity’s intraday pullback from the $1,908 region, or the highest level since June 11 touched earlier this Monday.
From a technical perspective, gold, so far, has struggled to find acceptance above the $1,900 mark, though the emergence of some dip-buying favours bullish traders. This, along with last week’s bullish breakout through a downward sloping trend-line extending from June 2021, supports prospects for additional near-term gains.
That said, RSI (14) on the daily chart remains closer to the overbought zone, suggesting that any subsequent move up is more likely to remain capped near 2021 high, around the $1,916 area. Sustained strength beyond will be seen as a fresh trigger for bullish traders and set the stage for an extension of the recent appreciating move.
On the flip side, any meaningful pullback is likely to find support near the $1,879-$1,877 region. Any further decline could be seen as a buying opportunity, which, in turn, should help limit the slide for gold near the aforementioned trend-line resistance breakpoint, around the $1,855 zone.
EUR/USD retreats toward 1.1350 despite upbeat PMIs.EUR/USD lost its traction and started to edge lower toward 1.1350 with market mood souring on Kremlin’s note that there is no concrete plan for a Biden-Putin meeting. PMI data from the euro area and Germany showed that the private sector’s business activity continued to expand at a robust pace in February.
EUR/USD News ..GBP/USD clings to gains above 1.3600 after impressive UK PMI.GBP/USD trades in the positive territory above 1.3600 as the British pound preserves its strength on the upbeat UK PMI data, which showed that the expansion in the private sector continued at a very strong pace in early February. Investors eye headlines surrounding Russia-Ukraine conflict.