Overnight Russian President Putin publicly addressed the world announcing Russia’s intention to invade Ukraine. Subsequently, the gold price has pushed higher to reach a high of $1974.20/oz. In the safe haven debate, Bitcoin continues to fall but gold and other metals have been performing very well.
In terms of the political backdrop, many analysts are looking to see if the situation could escalate if Nato sends in troops to defend Ukraine. Looking ahead to the rest of the session, U.S. President Biden is set to address America to discuss the U.S. reaction to the latest developments. It is widely expected that there will be some support in terms of weapon reinforcements and potentially troops.
When analyzing gold prices based on political events it is important to be flexible based on the headlines.
At the moment it seems unlikely that Putin and Russia will back down and therefore resistance levels are in focus. The price is at a pretty important level right now marked by the red zone. There has been a print above the area but the next major high is the all-time high on the chart of $2089.20/oz. There is a low volume node in the volume profile indicator at $2022.00/oz that could be a potential sticky point.
If somehow the situation does deescalate then there are plenty of support levels around. The blue zone is a previous wave high from early June. Beyond that, the mid-November area at $1869.30/oz is also a firm price point.