Slightly Higher As Knee-Jerk Reaction To Nuclear Plant Fire Moderates

Gold trades ~$4/oz firmer to print $1,940/oz at writing, back from best levels of the session ($1,950.88/oz) as the risk-off impulse from reports of Ukraine’s Zaporizhzhia nuclear plant being set ablaze by a Russian attack eased (the main nuclear facilities seemingly avoided meaningful damage, with a training facility providing the scene of the fire). The precious metal continues to operate around the top of Thursday’s range, as worry surrounding the Russia-Ukraine conflict continues to drive price action.

• On the wider Russia-Ukraine conflict, negotiators from both sides made some progress after meeting on Thursday, agreeing on the possibility of localised, temporary ceasefires for the establishment of “humanitarian corridors”. Both parties are due to meet for a third round “early next week”. Still, the conflict continues in full swing.
• Looking ahead, focus will turn to U.S. NFPs due later (1330 GMT), with March FOMC dated OIS now pricing in a little under 25bp of tightening (Fed Chair Powell’s recently voiced support for a 25bp hike at that meeting).
• From a technical perspective, gold remains in an uptrend and trades within a bull channel drawn from the Aug 9 low. Resistance is currently situated at $1,974.3/oz (Feb 24 high), while support is located some distance away at $1,878.4/oz (Feb 24 low and key short-term support).