Urgent Gold Price Alert: Will $2,900 Reclaim Ignite a Bull Run Amid Ukraine Focus? Gold is attempting a powerful comeback, hovering around the pivotal $2,900 mark as markets brace for a week dominated by critical geopolitical developments, particularly concerning Ukraine. After a sharp correction last Friday, all eyes are on whether gold can decisively close above this level, potentially paving the way for further upward momentum. This Monday, despite the US markets being closed for President’s Day, the financial world remains active, with a trio of Federal Reserve speakers ready to deliver insights amidst a relatively quiet macroeconomic calendar. The weekend was anything but quiet on the geopolitical front, setting the stage for a volatile week. Let’s delve into the key factors influencing the gold price this week. Geopolitical Tensions and the Gold Price Rally: Is Ukraine the Catalyst? The spotlight is firmly on Ukraine as US President Donald Trump and Russian President Vladimir Putin are scheduled to meet in Saudi Arabia to discuss peace. Notably, neither Ukraine nor European representatives are invited to these crucial talks, adding a layer of complexity and uncertainty. This high-stakes meeting is unfolding as US officials are already on the ground in Riyadh, signaling the seriousness of these discussions. Geopolitical instability is traditionally a tailwind for gold, considered a safe-haven asset. Will developments surrounding Ukraine further fuel the gold price rally? Trade War 2.0 Fears: Another Booster for Gold? Market participants are also keenly awaiting further details on President Trump’s reciprocal tariff plans. The potential for heightened global trade war tensions is looming, especially with reports from Bloomberg suggesting levies on automobiles could be implemented as early as April 2nd. A full-blown trade war can disrupt global supply chains, increase inflation, and inject significant uncertainty into the global economy. In such environments, investors often flock to safe-haven assets like gold, potentially driving up the gold price . Bitcoin Joins the Safe-Haven Race? Senator Lummis Advocates for US Reserves In a noteworthy development, Senator Cynthia Lummis has proposed adding Bitcoin to the US reserves, emphasizing the blockchain network’s transparency and accessibility. This suggestion comes as Bitcoin is increasingly being viewed as a digital gold, offering an alternative safe-haven asset. Could this proposal, if it gains traction, further solidify the appeal of alternative assets like gold and Bitcoin amidst economic and geopolitical uncertainties? While the immediate impact on gold price may be indirect, it signals a broader shift in how safe-haven assets are perceived. Federal Reserve Speakers in Focus: Will They Move the Gold Price Needle? Despite the US bank holiday, the Federal Reserve is active with three speakers scheduled throughout Monday: 14:30 GMT: Federal Reserve Bank of Philadelphia President Patrick Harker speaks on the economic outlook. 15:20 GMT: Fed Governor Michelle W. Bowman discusses the economy and bank regulation. 23:00 GMT: Fed Governor Christopher J. Waller provides insights on the economic outlook. While the macroeconomic calendar is light, these speeches could offer clues about the Fed’s stance on inflation and interest rates, which can indirectly influence the gold price . Any hawkish signals could temper gold’s gains, while dovish undertones might provide further support. Technical Analysis: Gold Navigates Key Levels From a technical perspective, gold is showing resilience after Friday’s decline, reclaiming the $2,900 level. However, with US bond markets closed, traders should be cautious and watch for headlines related to Ukraine and potential tariff announcements. Key technical levels to watch are: Support Levels: S1: $2,859 S2: $2,836 Significant Support: $2,790 (October 31, 2024, high) Resistance Levels: Daily Pivot: $2,899 (First level to reclaim) R1: $2,922 (First resistance to overcome) R2: $2,962 Psychological Level: $3,000 A sustained move above the R1 resistance at $2,922 would be a bullish signal, potentially propelling gold towards the $2,962 and then the psychological $3,000 level. Failure to hold above the Daily Pivot at $2,899 could see gold retesting support levels. US-China Trade War FAQs: Understanding the Implications The specter of a renewed trade war between the US and China is casting a long shadow over global markets. To understand the potential impact, let’s address some frequently asked questions: Question Answer What does “trade war” mean? It’s an economic conflict involving trade barriers like tariffs, leading to escalating import costs and a higher cost of living. What is the US-China trade war? An economic dispute that began in 2018 with the US imposing tariffs on China over unfair trade practices. China retaliated, and tensions have fluctuated since. What about “Trade War 2.0”? President Trump’s return and pledge for 60% tariffs on China have ignited fears of a renewed and intensified trade war, potentially disrupting global supply chains and fueling inflation. Conclusion: Navigating Uncertainty with Gold As geopolitical tensions surrounding Ukraine escalate and trade war fears resurface, gold is attempting to re-establish itself above the crucial $2,900 level. The week ahead is packed with potential catalysts, from peace talks in Saudi Arabia to speeches from Federal Reserve officials. Monitoring these developments closely will be crucial for understanding the future trajectory of the gold price . A successful reclaim of $2,900 could signal a renewed bullish phase for gold, driven by its safe-haven appeal in these uncertain times. However, traders should remain vigilant and prepared for potential volatility as news unfolds. To learn more about the latest Forex market trends, explore our article on key developments shaping Gold and institutional adoption.
