Article by: ETO Markets
Gold dipped into the $…–… area early Friday in Asian trading but found enough dip-buying to snap a two-day slide, rallying to around $… on renewed safe-haven demand amid heightened Russia–Ukraine hostilities, Middle East tensions and India–Pakistan border skirmishes. A modest pullback in the U.S. dollar from a near one-month peak added fuel to gold’s advance, though lingering Fed hawkishness and easing U.S. recession fears continue to underpin the dollar and cap gold’s gains. In addition, optimism around a U.S.–U.K. trade deal—which maintains a 10% levy on most British imports—and the prospect of U.S.–China tariff talks over the weekend have reduced pressure on the dollar, further limiting bullion’s upside. Market participants are also bracing for remarks from key Fed officials later today, seeking fresh clues on the timing of future rate cuts; any indications that the Fed will delay easing could reignite dollar strength and weigh on gold, even as geopolitical jitters keep the metal on course for modest weekly gains.
From a technical perspective, the recent breach of the former $… pivot and the drop below $… have tilted the technical scales in favour of XAU/USD bears, yet daily oscillators—while waning—have not fully validated this downside pressure, advising caution before committing to fresh shorts. Initial support is likely to emerge around $…–…; a decisive break there could open the path to the intermediate $…–… zone and potentially last week’s low near $…. On the upside, the Asian-session peak near $… now serves as immediate resistance, with further advance capped at $…–…; only a sustained move beyond that level would shift momentum back toward $… and ultimately challenge the weekly swing high around $…–….
