The Russian/Ukrainian headlines have been negative. It remains highly unlikely that there will be any glimmer of hope for a ceasefire, which supports safe-haven assets.
In the mid-American session, gold reached the high of 1,949. Investors' fears fueled by geopolitical events makes gold very attractive. It is likely that in the coming days the metal will continue its upward trend until it reaches the high of 1,974.
The war escalation triggered by the Russian invasion of Ukraine continues to push investors to safety. Therefore, we expect a correction in gold towards the 21 SMA around 1,928 to buy again with targets in 1,937(6/8) and until 1,968(7/8).
Conversely, a close below the 21 SMA located at 1,828 on the 4-hour chart could be the start of a technical correction towards the support 200 EMA located around the psychological level of $1,900.
The second round of talks between Ukraine and Russia will take place on Wednesday, March 2. The odds are against any positive outcome so that the parties will hardly reach any agreement, since President Vladimir Putin said that the invasion would continue until it achieved its objectives.
Without a doubt, if these talks do not lead to a convincing agreement, gold is expected to break the resistance level of 1,974 and reach the psychological level of $2,000.
The short-term outlook remains bullish as the gold price is above the 200 EMA and above the 21 SMA. However, as long as it remains above 1,900, any technical correction will be considered an opportunity to continue buying gold with targets up to 1,974.
On the other hand, the eagle indicator has reached extremely overbought levels. This is a sign that a pullback in the gold price could occur and then it could resume its dominant uptrend.
Support and Resistance Levels for March 02- 03, 2022
Resistance (3) 1,968
Resistance (2) 1,962
Resistance (1) 1,949
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Support (1) 1,913
Support (2) 1,902
Support (3) 1,883
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Scenario
Timeframe H1
Recommendation: buy above
Entry Point 1,828
Take Profit 1,937; 1,968
Stop Loss 1,922
Murray Levels 1,968(7/8), 1,937(6/8) 1,906(5/8), 1,975(4/8)
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