The price of an ounce of gold trades steady above the psychological level of $2000 on Tuesday. The strong rally was supported by the uncertainties surrounding the Russia-Ukraine crisis and rising inflation fears.
For today, If the upside momentum continues then the next upside level is to watch $2024 and $2050. On the downside, any meaningful pullback now seems to find some support near the $1995 zones, below which the slide could further get extended towards the $1980 regions.
Asian shares and US futures plunged on Tuesday morning as the war in Ukraine continues into its second week. Meanwhile, the European shares recovered some early losses following the latest report says the European Union (EU) is reportedly considering massive joint bond sales to fund energy end defence spending.
Crude oil prices trade flat on Tuesday. During the previous session, the oil prices reached the highest level since 2008 as the United States and European allies mull a Russian oil import ban.
In the currency market, the Greenback, in terms of the US Dollar Index (DXY), corrected slightly lower but the index remains in favour as a safe haven currency due to global growth fears. The EURUSD struggling to find the upside momentum despite the release of better-than-expected Eurozone GDP data.
The precious metal retreat back to near the $2000 area after the metal hit a new session high of $2020. Technically, the overall momentum remains bullish throughout the European session.
On the data front, Germany released the latest retail sales and factory orders data on Monday. German factory orders expanded 1.8% mom in January, faster than the economists' forecast of +1.0% and the Retail sales increased 2% mom in January.
Worldwide, more than 440 million people have been confirmed infected and more than 5.91 million have died. The United States has confirmed over 79 million cases and has had more than 950,000 deaths from COVID-19, the highest totals in the world.
Technical Outlook and Review
EURUSD: The currency pair needs to stay above 1.0800; otherwise. 1.0770/30 may be visible soon. On the upper side, 1.1940 the key resistance zones to watch, if the pair breaks and close above this area then the next supply level to watch is around 1.1990/1.1050.
The important levels to watch for today: Support- 1.0850 and 1.0810 Resistance- 1.0930 and 1.0980.
DOLLAR INDEX: For today, the index is supported at 98.60 level, any break below this level will open the doors to 98.40 and 98.00. On the flip side, 99.45 remains the key resistance to watch.
The important levels to watch for today: Support- 98.60 and 98.40 Resistance- 99.45 and 99.80.
Quote of the day - “If ever there was an area in which to do the exact opposite of that which government and the media urge you to do, that area is the purchasing of gold.” — Robert Ringer.