Gold Price Forecast: XAU/USD drops half a percent to $1,970 on cautious optimism over Ukraine crisis.

Gold prices have sensed support near 200-period EMA at $1,975.40.A mixed bag from the Russia-Ukraine war has shifted the focus of investors to Fed’s policy action.

Intensifying fears of stagflation claims a modest hawkish stance from the Fed.

Update: Gold (XAU/USD) extends Friday’s downbeat performance as sellers attack $1,970 during the initial hours of Monday’s Asian session.

The yellow metal’s recent losses could be linked to the increased hopes of a Ukraine-Russia ceasefire, as well as easing differences between the US and China.

During the weekend, Reuters confirmed upbeat developments on the Moscow-Kyiv talks, following the positive updates from negotiations between Russia and Ukraine by Russian President Vladimir Putin on Friday. Also positive was the news from Bloomberg that diplomats from the US and China will meet for the first time in person since the Ukraine-Russia crisis began on Monday.Moving on, gold traders will keep their eyes on the Ukraine developments whereas talks surrounding the Fed’s monetary policy meeting will also be crucial amid hopes of a 0.50% rate hike.

Gold (XAU/USD) is likely to juggle on Monday as broader risk-off impulse may provide tailwinds on the downside while upside gains will remain capped on a likely hawkish stance this week. The odds of an interest rate hike decision by the Federal Reserve (Fed) are very much lucrative; however, the concept that will hold the nerves of investors will be the extent of the interest rate hike.

Gold prices are getting mixed cues from the Russia-Ukraine war headlines. At once, U.S. Deputy Secretary of State Wendy Sherman said Russia was showing signs of willingness to engage in substantive negotiations about ending a conflict on Sunday. While, on the risk-off impulse side, Russian missiles attack on large Ukrainian base near the border with NATO member Poland escalated fears of third world war.

Gold Technical Analysis

On an hourly scale, XAU/USD is auctioning in a falling channel that signals for a lackluster move with a negative bias. The precious metal has sensed support near 200-period Exponential Moving Average (EMA) at $1,975.40. The Relative Strength Index (RSI) (14) is oscillating in a range of 40.00-60.00, which signals a back and forth movement in the precious metal ahead.

AUD/USD sold off at 0.7300, as risk sentiment turns sour.AUD/USD is extending losses to test 0.7250 after facing rejection at 0.7300. The risk sentiment has turned sour on falling Chinese stocks due to the coronavirus resurgence in the country. Concerns over the Russia-Ukraine war loom while traders turn cautious ahead of the Fed rate hike. 

AUD/USD News 

Gold drops half a percent to $1,970 on cautious optimism over Ukraine crisis.Gold extends Friday’s downbeat performance as sellers attack $1,970 during the initial hours of Monday’s Asian session. The yellow metal’s recent losses could be linked to the increased hopes of a Ukraine-Russia ceasefire, as well as easing differences between the US and China.

Gold News 

EUR/USD: Bears retake control below 1.0980 resistance confluence.EUR/USD reverses the early Asian session gains while taking offers around 1.0915 by the press time on Monday. The major currency pair remains below a convergence of the nearby descending trend line and 50-SMA amid bearish MACD signals.

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