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GOLD: Buoyed By Geopol Tensions

GOLD
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Gold is steady in today’s Asia-Pac session, after closing 0.7% higher at $2650.60 on Wednesday, a third consecutive session of gains.

  • The move came amid a further increase in geopolitical tensions as Ukraine launched another long-range missile attack on Russia.
  • Despite the heightened geopolitical risk, analysts at Standard Chartered believe that macro factors, including the US dollar and rate-cut expectations, are likely to set the tone in the near term.
  • Federal Reserve Bank of Boston President Susan Collins said that more interest-rate cuts were needed, but policymakers should proceed carefully to avoid moving too quickly or too slowly.
  • Lower rates are typically positive for gold, which doesn’t pay interest.
  • According to MNI’s technicals team, the long-term trend condition in gold remains bullish, with the yellow metal piercing the 20-day EMA at $2,651.3 today.
  • A clear break above it would highlight a possible reversal and signal the end of the recent bearish corrective cycle, opening $2,710.4, the Nov 11 high.
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Gold is steady in today’s Asia-Pac session, after closing 0.7% higher at $2650.60 on Wednesday, a third consecutive session of gains.

  • The move came amid a further increase in geopolitical tensions as Ukraine launched another long-range missile attack on Russia.
  • Despite the heightened geopolitical risk, analysts at Standard Chartered believe that macro factors, including the US dollar and rate-cut expectations, are likely to set the tone in the near term.
  • Federal Reserve Bank of Boston President Susan Collins said that more interest-rate cuts were needed, but policymakers should proceed carefully to avoid moving too quickly or too slowly.
  • Lower rates are typically positive for gold, which doesn’t pay interest.
  • According to MNI’s technicals team, the long-term trend condition in gold remains bullish, with the yellow metal piercing the 20-day EMA at $2,651.3 today.
  • A clear break above it would highlight a possible reversal and signal the end of the recent bearish corrective cycle, opening $2,710.4, the Nov 11 high.