Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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    Golden bulls return up to 1905, historic 800 pips day-movement

    Thursday 24th February 2022 will remain remarkable in the lives of all gold traders as the precious metal had turned many traders into millionaires in a single day with a massive pump of over 800 pips in less than 24 hours. Gold prices started the day ranging closely at $1894.00 and ended up creating a historic record by pumping massively to a new all-time-high at $1974.00 which underscores a total movement of 800 pips within 24 hours of day trading.

    gold price

    Gold (XAU/USD) had made this move during the North American session reacting to the news of a final outbreak of war between Ukraine and Russia. Similarly, other European currencies including Euro and pounds saw a free fall in the forex market as investors were forced to push their money into gold as a safe-haven.

     

    russia ukraine war

    The Russian President Vladimir Putin had declared war in a pre-dawn televised address, explosions and gunfire were heard throughout the day in Ukraine's capital and other places in the country, with at least 100 people reported killed.

    This assault no doubt marks the beginning of a cold-blooded war between the two countries after some weeks of fruitless diplomatic efforts by Western leaders to avert war over Russian demands for a redrawing of post-Cold War security arrangements in Europe.

    The U.S. President Joe had described this as, “a premeditated attack", and would further unveil harsh new sanctions, coordinated with allies, against Russian banks, oligarchs and state companies.

    In his words: "Putin is the aggressor. Putin chose this war. And now he and his country will bear the consequences".

    Speaking on the recent development, the Russian president - Putin said he had ordered "a special military operation" to protect people, including Russian citizens, subjected to "genocide" in Ukraine - an accusation the West calls baseless propaganda.

    Of course during war and crisis situations, Gold had always become the investors’ favorite and a safe-haven to hedge against the falling economy. Thus investors reacting to the news of Ukrainian forces having to battle with the Russian invaders on three sides on Thursday after Moscow unleashed the biggest attack on a European state since World War Two, prompting tens of thousands of people to flee their homes pushed in so much investments into gold which pumped the price of the precious metal massively to a fourteen months ATH at $1974.

    Nevertheless, a temporary quick profit-taking had occurred after gold reached this new ATH. Gold had closed the day finally at $1905 after a massive profit taking by traders. The precious metal no doubt is getting ready for the next movement upwards. The prevalent sentiment for XAU/USD at this point is massively bullish as depicted by the daily chart. It is possible that the price of gold would continue to range temporarily at the region as the heat of the war intensifies though many believe that there are high chances for gold to visit $2000 if the war intensifies.

    At present, the first resistance for gold would be the previous daily high created in the month of June at $1,959.06. If the bulls break this point again, then we would retest the ATH at $1974 and possibly go beyond it to a higher region probably $2000. Of course there is no better time to invest in gold than the present moment as the uncertainty of the Russian-Ukranian war intensifies daily.

    Last Updated: 25/02/2022

    This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


     

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