Gold stays bullish beyond $1,875 level, focus on US NFP, Ukraine

4 Mar 2022

Gold seesaws around weekly tops after poking $1,951 during early Friday. In doing so, the bullion remains well above short-term key supports ahead of crucial US jobs data. Also keeping gold buyers hopeful is the ongoing Russia-Ukraine standoff. That said, overbought RSI conditions and recently easing bullish bias of the MACD hint at gold’s extended pullback towards June 2021 peak of $1,916, a break of which will direct the sellers towards a monthly support line near $1,906 and then to the $1,900 threshold. However, a convergence of the 21-DMA and multiple levels marked since mid-November 2021, around $1,877-75, will keep the gold bears away. It should be noted, though, that a clear downside break of $1,875 will make the precious metal vulnerable to portray a bearish trend with January’s peak of $1,853 acting as the next support.

Meanwhile, a successful upside beyond the weekly top near $1,950 becomes necessary before directing gold buyers towards the latest peak of $1,974, also the highest level since September 2020. During the bullion’s run-up beyond $1,974, the $2,000 round figure and $2,015 may act as buffers ahead of highlighting the year 2020 top close to $2,075.

Overall, gold buyers remain in the driver’s seat but a pullback can’t be ruled out if the US dollar gets favorable numbers of the US Nonfarm Payrolls (NFP).