Investors' fears remain elevated as cease-fire talks between Ukraine and Russia may yet go either way. This uncertainty prompts seesawing demand for assets with varying degrees of risk. Check out our latest analysis of Ethereum to learn more about the fluctuations in the crypto market.
Massive levels of adverse volatility continue to be observed across different markets, as the war in Ukraine rages on. Conditions are likely to remain tight as peace talks between the two sides are expected to resume in the next several days. In the meantime, demand for safe-haven securities is also likely to remain elevated.
As can be seen on the 4H chart above, the price of gold is currently consolidating in a range between the 23.6 per cent Fibonacci retracement level at 1922.32 and 38.2 per cent Fibonacci at 1890.01. Moreover, the price action is, for the time being, contained between the 50-day MA (in green) and 20-day MA (in red), as it threads just above the upper limit of the ascending channel.
Depending on how the peace talks develop next, a breakout above the 23.6 per cent Fibonacci may be attempted, though this is then likely to be followed by a pullback to the resistance-turned-support at 1922.32.
Conversely, a breakdown below the lower limit of the channel could allow for a subsequent dropdown towards the 38.2 per cent Fibonacci, which is about to be crossed by the 100-day MA (in blue) soon. This would make the 1890.01 threshold an even more prominent turning point, which is already evident given its close proximity to the psychologically significant level at 1900.00.
Reports of a large Russian convoy headed towards Ukraine's capital Kyiv jeopardises peace talks as the Kremlin ramps up its military pressure. Mounting frustrations from not being able to secure a quick victory could make Putin even more unhinged, which, so far, has not been reflected on the stock market.