Choose country & language:
Gold price exhibited some volatility on Monday, but continued trading above the $1,829 per ounce resistance level. For most of the day gold price fluctuated around the $1,835 per ounce level, supported by rising geopolitical tensions.
US President Joe Biden has warned Russia that an invasion against Ukraine would have serious consequences, while the EU has threatened Russia with "massive" economic sanctions. A potential escalation of the Russia-Ukraine crisis would boost the price of gold further, as the metal is considered a safe-haven asset and its price rises in times of war. Geopolitical tensions in the region might also serve to drive the price of other commodities up, especially energy-related assets, contributing to rising inflation rates. The price of gold benefits from increased inflation, as it is often used as an inflation hedge.
If the price of gold continues to climb, it may find resistance at $1,877 per ounce, while if the price of gold decreases, the $1,800 level may provide support, while further down, support may be found at 1,782 per ounce. This week, gold price is expected to show some volatility, due to the mounting tensions between Russia and Ukraine. Also expected to affect the price of gold is the outcome of the FOMC meeting on Wednesday.
The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.
Written by:
Myrsini Giannouli
industry presence
as a Liquidity Provider
and reliable execution
client funds
customer support
Fill in the registration
form and click
"Create account".
Once you are in the client secure area, please proceed with uploading your Proof of Identity and Proof of Residence.
When your live account is approved, you can deposit funds and start trading on your chosen platform!
