Gold Price (XAU/USD), Chart, and Analysis
- Risk markets turn sharply higher.
- Gold slumps into support.
- Tread very carefully when trading on tweets.
Risk markets jumped higher Friday mid-morning after a tweet attributed to Russian President Vladimir Putin, via Interfax, suggested that there are ‘certain positive shifts in talks with Ukraine’ without expanding any further. The tweet sent risk markets sharply higher with the DAX 40 currently 450 points higher on the session, while the S&P 500 is nearly 60 points higher. On the flip side, gold has fallen back to support around $1,967/oz. while Palladium is nearly 5% lower on the day at $2,780.
As always care should be taken when trading on tweets, especially in these current times when sources can suddenly deny previous quotes, leaving the market vulnerable to a sharp retrace. For now, the move seems to have legs but traders need to be aware of the sharp risk reversal potential and trade with discipline and tight stops.
Gold touched $1,965/oz. just after the tweet after having attempted to break back above $2,000/oz. earlier in the session. The precious metal is now sitting in a prior zone of support which may hold going into the weekend unless further news shifts the dynamic again.
Gold Monthly10 Minute Price Chart – March 11, 2022
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