#RussiaUkraineWar##Gold Technical Analysis# 24K99 News On Friday (November 22), the price of gold broke through the $2700 per ounce mark for the first time in over two weeks, with the escalating Russia-Ukraine crisis driving a surge in gold prices. FXStreet analyst Christian Borjon Valencia wrote an article on Friday analyzing the technical trends of gold prices.
Despite the US dollar hitting a two-year high on Friday, gold skyrocketed on the same day.
Spot gold soared $46.54 on Friday, up 1.74%, closing at $2715.85 per ounce, reaching a new high since November 6.
Valencia pointed out that on Friday, as the US Treasury yields declined, gold prices rose to a two-week high. Geopolitics continued to play a role, maintaining buying interest in gold. Escalating geopolitical concerns, including the potential expansion of the Russia-Ukraine conflict, are driving the demand for gold as a safe haven asset.
On Friday, the US 10-year Treasury notes yield dropped by two basis points to 4.40%, which is positive for gold prices.
Valencia wrote that the risk of the Russia-Ukraine war expanding into a US-Russia conflict has raised gold prices. This, along with the uncertainty surrounding Middle East conflicts involving Israel and Lebanon, may pave the way for gold to retest the historical high of $2790 per ounce.
Allegiance Gold's Chief Operating Officer Alex Ebkarian stated: "The escalation of the Russia-Ukraine conflict appears to be evolving into a confrontation between Russia and the United States. War will certainly enhance short-term safe haven appeal."
During periods of geopolitical tensions, economic risks, and low interest rates, gold often performs well.
Ebkarian said that due to ongoing policy shifts, as well as the inflation risks brought by Trump's proposed trade tariffs, the gold outlook remains strong, with an expected touch of $2750 per ounce in mid-December.
On Friday evening local time, Russian President Vladimir Putin said that Russia will continue to conduct new missile tests, including testing under combat conditions, based on the level of security threats it faces.
A day before Putin's speech, Russia launched this new type of intermediate-range weapon towards Ukraine for the first time. Putin stated that Ukraine's use of U.S. ballistic missiles and British cruise missiles to attack Russia prompted Russia to take this action.
During a meeting with the leadership of the Russian Ministry of Defense and representatives of the military-industrial complex at the Kremlin on Friday evening, Putin said that the speed and achievements of the development of the 'Avangard' intermediate-range hypersonic ballistic missile are "proud and admirable". In the face of new and growing threats and challenges, the development of such weapons is crucial for Russia.
Putin stated that the 'Avangard' missile is not a modernization of old Soviet weapons, but a completely new research result, with its power, especially in striking enemy targets in large-scale cluster operations, being comparable to strategic weapons. Currently, there is no technology in the world that can intercept this missile.
Putin said in a television address on Thursday evening that in response to long-distance missile attacks on Russian territory by the U.S. and the UK, Russian armed forces struck an industrial area producing missiles in Dnipro, Ukraine. The Russian military tested a new intermediate-range ballistic missile called 'Avangard' in this operation, without a nuclear warhead.
The range of intermediate-range missiles is 3000-5500 kilometers (1860-3415 miles), allowing them to strike anywhere in Europe or the western United States from Russia.
Short-term technical outlook for gold
FXStreet analyst Christian Borjon Valencia pointed out that the price of gold will continue to rise, with a target of retesting the $2,750 per ounce level. On Thursday, the gold price broke above the 50-day Simple Moving Average (SMA) of $2,663 per ounce, prompting buyers to push the gold price higher.
Valencia stated that in this environment, if the gold price surpasses $2,750 per ounce, then the next target will be the historical high of $2,790 per ounce. Once the latter is breached, the gold price will aim for the $2,800 per ounce level and pave the way for testing $3,000 per ounce. Goldman Sachs considers $3,000 per ounce as the next major resistance level.
(Spot gold daily chart source: FXStreet)
On the downside, Valencia added that if the gold price plunges below $2,700 per ounce, the price may start trading in the range of $2,650-$2,700 per ounce. If gold further declines and bearish forces breach the low point of November 14th at $2,536 per ounce, then the price may fall to $2,500 per ounce.
Valencia indicated that the Relative Strength Index (RSI) has turned bullish, indicating that buyers are in control.
