International conflict has investors flocking to the war-hedging metal which recently touched the $1,900 mark for the first time since June of last year. Russian troops have gathered at the borders between them and Ukraine and have yet to ease off. A big question now is whether the gold rush will continue or not, and that all depends on what happens next. Price is down -0.5% on the day at the time of writing this.
The factor that can move this precious metal higher is the inverse reason for the stock market: the anticipation of a Russian invasion. If tensions persist, so does the upside for gold.
Another factor that can help gold is COT data. Today, we will see a more updated report on non-commercial position change in futures contracts. Last week's report showed us a huge decrease in short positions as well as increased buying on the long side.
However, retail is ready to catch a pullback as short sentiment is overwhelmingly bearish. Some analysts expect the metal to hit as high as $2000 before any kind of pullback, but I am not confident in that move. I do believe we can see some more gains within the next week or so, but another $100 move seems unlikely. We are also nearing the heavily anticipated interest rate hike from the Fed which will only hurt gold.
Gold hits a massive run to the upside after tensions on the Russian-Ukraine border escalate. The pair did end up touching the $1900s and looks like the move could continue if tensions don't ease. $1917 is the next big resistance level which could serve as the top before we see a pullback to the $1800s. But, a break above this level could lead to a move to $1958.
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