In times of market turmoil, investors turn to gold as a haven asset. When Russian troops invaded Ukraine on February 24, the yellow metal hit 1,974. Today, on March 8, it reached a new high at the level of 2,020.40
Before the current crisis, the price of gold hovered around 1,800 without having made significant gains since the end of 2020.
Without a doubt, gold as a safe-haven asset will continue an upward trend and could reach 2,250 in the coming months. This is the level +1/8 Murray on weekly charts.
Earlier in the European session, gold reached the 2020.40 level, the highest level since August 2020. Then, it experienced a downward correction to the psychological level of 2,000.
Currently, it is bouncing above 8/8 Murray with a bullish bias. The bullish trend towards the resistance zone +1/8 Murray around 2,031 is likely to continue in the coming hours.
On the 1-hour chart, we can see the formation of a rising wedge pattern. The break below the 21 SMA and below this pattern could accelerate the move down towards 200 EMA located at 6/8 Murray around 1,940.
Our trading plan for the next few hours is to buy gold only if it remains trading above the psychological level of $2,000. Conversely, a break below 1,996 will be a clear signal to sell with targets at 1,968 (7/8) and 1,937(6/8).
The eagle indicator is giving an overbought signal and a technical correction is imminent in the next few hours.