A Short Term Outlook: XAU/USD (Gold); March 18, 2022

Key Points to Keep in Mind While Trading in Gold During U.S. Session

Today U.S. will release Existing Home Sales data 1400 GMT/1930 IST. It’s a leading indicator of economic health because the sale of a home triggers a wide-reaching ripple effect.Usually it will give around $8+ volatility to the gold.

Let’s check out what’s going on in Russia – Ukraine:

• Germany’s Scholz invites G7 leaders to summit next Thursday.
• Ukraine will not abandon its bid to join the European Union to reach a compromise with Russia as part of an agreement to end the war, the deputy chief of staff of Ukrainian President Volodymyr Zelenskiy said on Friday.
• Ukrainian President Volodymyr Zelenskiy said he spoke with the head of the European Commission Ursula von der Leyen on Friday and Ukraine expects progress to be made on its application to join the European Union in the coming months.
• Latvia and Estonia each expel three Russian diplomats – Foreign Ministries.
• Australian PM Scott Morrison & PM Modi will hold the 2nd India-Australia virtual summit on Mar 21. “We will discuss a range of regional and multilateral issues, including the situation in Ukraine,” said Morrison.
• Russian defence ministry says it has taken control of more than 90% of self-proclaimed Luhansk People’s Republic – Ifax.
• The missiles that hit Lviv were launched from the Black Sea, but two of the six that were launched were shot down, Ukrainian air force’s western command said on Facebook.
• Saudi Arabia issued a royal directive extending tourist and business visas of Ukrainian citizens without fees or fines for humanitarian considerations, state news agency SPA said on Friday. The extension will be automatic without the need to visit the migration authorities.
• The U.S. House of Representatives overwhelmingly backed legislation on Thursday to remove “most favored nation” trade status for Russia and Belarus over the invasion of Ukraine, paving the way for higher tariffs on imports from the countries – Reuters.

Source: Timesofindia

Technical View:

XAU/USD (GOLD):

• Gold exhibits range bound movement and hovers around $1,940 mark.
• Today pair made intraday high at $1,945 and low at $1,926 mark.
• A triple EMA on a day chart and H1 chart suggest up trend for the time being.
• A sustained close above $1,948 on H1 chart requires for the upside rally.
• Alternatively, a consistent close below $1,921 will check further supports.

 
Take a look and do trade wisely!
Good Luck