Gold futures edged higher in Monday’s limited trade as doubts over a potential summit between the U.S. and Russian presidents to discuss the crisis in Eastern Europe kept bullion supported near its highest level since June 8.
In Monday’s shortened trading session, April Comex gold settled at $1906.20, up $6.40 or +0.34%. On Friday, the SPDR Gold Shares ETF (GLD) finished at 177.13, down $0.12 or -0.07%.
The possibility of a summit to discuss a path out of Europe’s biggest military crisis in decades between U.S. President Biden and Russian President Putin put pressure on gold prices early in the session, but the market rebounded late in the day on signs of increased confrontation. Meanwhile, the market was further underpinned after the meeting was cancelled.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through $1910.80 early Tuesday will signal a resumption of the uptrend. A move through $1821.10 will change the main trend to down.
The minor trend is also up. A trade through $1845.40 will change the minor trend to down. This will shift momentum to the downside.
Short-Term Outlook
On Monday, April Comex gold futures settled inside its contract retracement zone at $1899.80 to $1951.00. Trader reaction to the long-term 50% level at $1899.80 will set the tone.
Bullish Scenario
A sustained move over $1899.80 will indicate the presence of buyers. If this move is able to generate enough upside momentum then don’t be surprised by an acceleration into the long-term Fibonacci level at $1951.00.
Bearish Scenario
A sustained move under $1899.80 will signal the presence of sellers. If this creates enough downside momentum then look for a break into the minor pivot at $1878.10. This is followed by the main 50% level at $1845.70 and the minor bottom at $1845.40.
The main bottom at $1845.40 is the last potential support before the $1821.10 main bottom.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
