Gold Price Forecast: XAU/USD again battles $1,917 hurdle as Russia bombards Ukraine

• Gold picks up bids to consolidate late Thursday’s pullback from multi-day high.
• Russia bombards Ukraine, six explosions reported in Kyiv.
• US President Biden braces for a meeting with allies and NATO heads, UK proposed including SWIFT in latest Russian sanctions.
• Yields drag USD, stock futures drop as markets await further geopolitical updates, US data.

Gold (XAU/USD) regains upside momentum around $1,915 during Friday’s Asian session, up 0.82% intraday following the U-turn from a 17-month high. The bullion’s latest recovery could be linked to Russia’s bombing over Ukraine and missile attacks at the border.

In its latest update, Ukraine reported six explosions in Kyiv and confirmed losing command over Chernobyl nuclear plant. The news of the Ukrainian border post in the Zaporizhzhya region hit by missile strike also weighs on sentiment and favors the XAU/USD’s safe-haven demand.

Furthermore, US President Joe Biden showed readiness to meet friends and heads of the North Atlantic Treaty Organization (NATO) to discuss the security situation in and around Ukraine, per the White House.

It’s worth noting that Russia’s rejection of the Western push to not indulge in the invasion of Ukraine triggered the flight-to-safety the previous day, which in turn allowed the quote to initially cross the key hurdles and refresh multi-day high before marking a daily negative closing.

Comments from Russia, like “Moscow is willing to negotiate the terms of Ukraine's surrender,” seemed to have triggered the late Thursday’s rebound in market sentiment, resulting in gold’s pullback. Additionally, chatters that Ukraine President Zelenskyy said they need to discuss ceasefire with Russia also weighed on the metal prices previously.

Against this backdrop, Wall Street closed with mild gains after the initial plunge whereas the US 10-year Treasury yields closed more or less at the same level the previous day, after marking a volatile day. However, S&P 500 Futures drop 0.20% and the US Treasury yields remain pressured around 1.95% by the press time.

Moving on, geopolitical updates from Russia-Ukraine are the key catalyst for the gold traders to watch. Also important will be the Fed’s key inflation gauge, namely Core PCE Price Index, as well as Durable Goods Orders, for January.

Read: Gold prices & Russia-Ukraine conflict

Technical analysis

Despite reversing from a 17-month high, gold prices remain above November 2021 high, which in turn joins firmer RSI and bullish MACD signals to direct the XAU/USD buyers towards a horizontal area comprising June 2021 peak surrounding $1,917.

Should the quote manage to provide a daily closing beyond $1,917, it will muster the courage to battle the $1,973-80 resistance zone, including multiple levels marked during July-September 2020.

During the run-up, tops marked in January 2021 surrounding $1,960, as well as November 2020’s high $1,965, will act as an intermediate halt.

Alternatively, a daily closing below $1,917 may recall the $1,900 threshold on the chart, if not then November 2021 top, close to $1,877, will flash on the bear’s radar.

Gold: Daily chart

Trend: Further upside expected