Gold Price Forecast: XAU/USD retreats from daily highs but stays in the green, steady at around $1900

• Downbeat market mood augmented demand for the yellow metal.
• Vladimir Putin retaliates Western sanctions, putting the Russian army on high nuclear alert.
• XAU/USD Price Forecast: It is upward biased but subject to market sentiment.

Gold (XAU/USD) reached a daily high during the Asian Pacific session as the week began. The financial market’s mood worsened over the weekend when the Eurozone, US, UK, Canada, among other countries, imposed stringent sanctions on Ukraine. Russia’s response was fast when President Putin put its military on high nuclear alert. Those factors caused a gap on Monday when the markets opened at $1,919.15. At the time of writing, XAU/USD is trading at $1,903.

The sanctions included the removal of various Russian banks from the important SWIFT financial system. Furthermore, the US Placed sanctions on Russia’s top 10 financial institutions while having frozen assets of the Russian President and Russian ministers. Moreover, a dozen Russian oligarchs with ties with Putin witnessed the same alongside a travel ban.

In the meantime, US Treasury yields keep falling, signaling that the appetite for US Treasuries increased. Contrarily, the US Dollar Index, a gauge of the greenback’s value against a basket of six rivals, advance  0.19%, up at 96.81.

The US economic docket featured Goods Trader Balance for January, which printed a deficit of $107.63 B vs. $100.47 B estimated. At the same time, February’s Chicago and Dallas Fed Manufacturing Indexes came better than expected at 56.3 and 14, respectively.

XAU/USD Price Forecast

Gold (XAU/USD) gapped up and recorded a daily high at $1,919.15 but retraced to Monday’s daily pivot point around the $1,897.21 on a market sentiment swing. Late in the session, XAU/USD approaches the $1,900 mark, as market mood remains unchanged.

Indicators like the daily moving averages (DMAs) reside below the spot price, suggesting that gold is upward biased. The Relative Strength Index (RSI) is at 63, aims higher, after dropping to 60.70 on February 25, confirming the abovementioned, and with enough room to spate, before reaching overbought conditions.

That said, XAU/USD’s first resistance would be June 1, 2021, a daily high at $1,916.61, followed by February 28 daily high at $1,927.48 and then the YTD high at $1,974.48