Gold Price Forecast: XAU/USD seeks clarity of Russian military action to surpass 2022 highs, $1,917 eyed

• Gold price needs clarity on Russian military action to overstep $1,917.
• The Kremlin is in no mood to make a truce with Ukraine.
• The risk-off impulse has underpinned precious metal over the greenback.

Gold price has retreated from Thursday’s high at $1913.73. The precious metal is waiting for more clarity over the rumours that Russia could invade Ukraine at 4 am local time. As the clouds over the rumour get cleared, the investors may find a legitimate reason to initiate positions further in the precious metal.

The US Secretary of State Antony John Blinken said that he believes that Russia will invade Ukraine before the night is over, as reported by NBC News. The headlines had spurted the volatility in the market and the risk-aversion theme got more traction. The safe-haven assets got underpinned against the risk-perceived assets.

Earlier, the Russian administration unanswered the phone call requests from Ukraine, which strengthened the odds of an imminent war between Russia and Ukraine. It indicated that Russia is in no mood to make a truce with Ukraine and wanted war as a last resort. Then, Ukraine Foreign Minister Dmtryo Kuleba had requested an emergency meeting of the United Nations (UN) Security Council to reach a positive outcome against the ongoing tensions with Moscow. However, the Kremlin is supposed to strike Ukraine before the scheduling of the UN Security Council emergency meeting.

Meanwhile, the US dollar Index (DXY) has retreated from Thursday’s high at 96.36 after a stellar upside move as investors await fresh impetus on the Russia-Ukraine tussle.  

Gold Technical Analysis

On an hourly scale, XAU/USD is trading in a range of $1,886.67- $1,913.73 since Friday. The Relative Strength Index (RSI) (14) has shifted its trading range from 40.00-60.00 to 60.00-80.00, which indicates that an ascending trend has been established after a consolidation. The 50-period and 200-period Exponential Moving Averages (EMA) are scaling higher, which adds to the upside filters.