More upside for the gold is on the card.Fundamental Description:
We have seen bearish reversal for the gold (XAU/USD) during past few trading sessions. Gold is now vulnerable to rising Covid-19 cases in China and hawkish stance from federal reserve. As of writing, it is trading slightly above 1900 marks. It is still to be seen how it performs during the last few sessions of the month.
The war in Ukraine resulted by the Russian invasion on Feb. 24 continues. While it warned that the risks of a nuclear war should not be underestimated, Russia said that it wanted to reduce those risks.
Short term technical view:
We have seen reversal from the intraday low of 1895.78. It may retest its previously support turned resistance level of 1915 during the session.
As per technical, RSI is around mid level of 50 . During past few session, we have seen bearish pressure from the mid level of RSI. As U.S. CB Consumer confidence data is due for today, we may see spikes in prices for the gold. Any upside movement can lead to the level of 1915. My recommendations for the gold is to buy from the current level for the TP of S1 with the stop loss of S2. Those with bearish look can wait for the market reaction after the release of the U.S. data, with the target of S2 and stop loss above S1.
Alternate scenario: If we are unable to get closing above 1915, then bear may come forward to take prices below 1900 level.
