Gold Prices Edge Higher as Biden and Putin Plan to Speak

Gold prices edged higher on Monday ahead of plans for a possible Biden-Putin meeting over the Ukraine crisis. The US stock and bond markets are closed today. Gold prices softened near $1890, retreating from $1908, its highest since June highs. The US dollar is offered against most currencies today, while the Yen is the biggest laggard, as Russia-Ukraine tension dominates risk sentiment and price action.

Technical Analysis

Gold prices consolidated near the 8-year highs. Prices remain above support which was former resistance seen near a downward sloping trend line that comes in near $1,851. Resistance is seen near the June highs at 1,916. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Prices are overbought as the fast stochastic is printing a reading of 95, above the overbought trigger level of 80. The relative strength index is nearly overbought printing a reading of 69, just below the overbought trigger level of 70.

Medium-term momentum is positive as the MACD (moving average convergence divergence) index has generated a crossover buy signal. This situation occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram prints in positive territory with an upward sloping trajectory pointing to higher prices.