Marginally Softer In Asia

Gold is ~$4 worse off, printing $1,905.0/oz at typing. The precious metal trades well clear of Friday and Monday’s troughs, with worry surrounding an ongoing escalation in the Russia-Ukraine conflict continuing to support haven demand.

• To recap, planned European shipments of lethal weaponry to Ukraine and the increasingly visible impact of western sanctions on Russia (i.e. the Ruble’s plunge and the Russian CB doubling interest rates on Monday) has drawn strong rhetoric and retaliatory sanctions from Russia, with participants wary of further escalation re: more sanctions from western powers on Russia (noting that Russian President Putin ordered nuclear deterrent forces to be on “high alert” on Sunday over “aggressive statements” made by leading NATO powers).
• Worry re: a nuclear escalation has however eased from its extremes, after the U.S. indicated that they would not elevate their own nuclear posture in response.
• Russia-Ukraine talks held on Monday yielded no breakthroughs, although both delegations have indicated that there will be a second round of negotiations after consultations with their respective leaderships.
• Looking to technical levels, gold trades within its bull channel (drawn from the Aug 9 ’21 low), with the outlook remaining bullish despite recent volatility. Resistance is situated at ~$1,940.1 (top of bull channel), while support is seen at $1,878.4 (Feb 24 low and key short-term support).