Gold Price Forecast: XAU/USD bounces from $1,931 as fears intensify after Putin targets Ukrainian citizens

• Gold price looks set for a fresh rally after a corrective pullback towards $1,931.10.
• Putin has ordered to target Ukrainian civilians in response to their fierce resistance.
• The fresh wave of risk-off impulse has improved the demand for the yellow metal.

Gold (XAU/USD) has witnessed a pullback after kissing Tuesday’s high at $1,950.30 towards $1,931.10. However, the precious metal has bounced back firmly amid a rebound in the risk-on impulse.

The premeditated invasion of Ukraine has caused death and destruction in Kyiv. The build-up of military troops in Ukraine has forced people to leave Ukraine to save their lives.

In order to retaliate against Putin’s army, Ukraine’s military and civilians are firmly defending their country, and sanctions from the Western leaders are delighting their resistance. Post facing the fierce resistance from Ukraine’s civilians, Putin ordered to target civilians too. Moreover, missiles were aimed at Ukraine’s second-largest city, Kharkiv.

The Russian military activities have escalated in Ukraine after the Ukraine-Belarusian border gets flooded with Belarusian tanks. Ukraine Defense intelligence said that there are 300 Belarussian tanks close by the border, as per The Jerusalem Post. This has advanced the fears of more destruction in Ukraine.

The sanctions from the Western leaders have absolutely isolated Russia from other nations in the world. The collapse of the SWIFT international banking system for the latter is alarming a financial crisis in its economy.

The escalation in geopolitical fears has improved the appeal for safe-haven assets again and eventually the demand for the precious metal. Moreover, the US dollar index (DXY) has attracted significant bids and marching towards reclaiming Thursday’s high at 97.72.

Gold Technical Analysis

On a 15-minute scale, XAU/USD has given a breakout of an ascending triangle on the upside, which was in a range of Monday’s low and Tuesday’s average traded price at $1,891.13 and 1,925.35 respectively. Usually, an ascending triangle breakout on the upside denotes an expansion in the size of ticks, depth of volumes, and eases volatility in the asset. The precious metal has since pullback towards the 50-period Exponential Moving Average, which is trading around $1,935. The Relative Strength Index (RSI) (14) has sensed support around 40.00, which indicates that the asset is not as bearish anymore.

Gold 15-minute chart