• Increased tensions in Ukraine/Russian conflict fueled a greater desire for safe-haven metal.

• Technical Outlook for XAU/USD: Market sentiment is helping to make the outlook more positive. The $2,000 mark will be applied if the conflict escalates.

Update:Gold retreats to $1.906 after a refreshing multi-day high during Tuesday’s Asian session. Despite this, bullion prices still post 0.15% intraday gains and poke June 2021's top in spite of the gradual rise since January.

Recent rallies in metal could be related to headlines about Russia's possible invasion of Ukraine. Moscow has ordered troops into Eastern Ukrainian states, citing peacemaking efforts. A decree on friendship and cooperation signed by Vladimir Putin, Russian President, triggered a risk-off mood earlier in the day.

The United Nations (UN), UK, and US declared an emergency meeting to address the growing fears about a Russian invasion of Ukraine. Canada and Britain also announced their readiness for new sanctions against Russia. Yomiuri also mentioned Japan's warning that it would stop chip exports from Moscow to Ukraine in the event of an invasion. However, Scott Morrison, Australia PM, stated that they would be working with allies to implement sanctions against Russia.

The upside to the XAU/USD is also supported by geopolitics.

However, headlines about Russia-Ukraine will be the most prominent.

End of the update.

Tensions in Ukraine/Russia and Russia's President Vladimir Putin recognising two separatists Eastern Ukraine areas increased the demand for the yellow metal's safe-haven status. Gold trades at $1,910 as of the writing. This is up 0.60% from the previous week.

Russia recognizes Donetsk & Luhansk to be independent states

The two separatist leaders requested recognition from Russia Monday at the North American session. This was after a lengthy speech by Russian President Vladimir Putin. He compared the history of Russia and Ukraine. Putin, however, urged the Russian Parliament not to oppose the decisions and signed a decree of friendship and cooperation with Donetsk-Luhansk leaders.

Russian President Putin directed a peacekeeping operation to be conducted in the two eastern Ukrainian separatist regions. He also reiterated that sanctions would still be imposed by the West, and that Russia is entitled to retaliatory actions.

Gold's reaction

Non-yielding metal buyers took advantage US President's Day holiday and drove XAU/USD to $1,896 to $2,914, as the war drums in Ukraine don't seem to be fading.

West responds to Russian decision

The President of European Commission stated that recognition of two territories in Ukraine by the European Union is a "blatant violate of international law and of the Minsk accords." She stressed that sanctions will be imposed on those who are involved in this "illegal act."

Over the pond, US President Joe Biden met with Ukraine President Zelensky. Additionally, the US President Biden signed an executive ordering banning new investments, trade and financing to the DNR/LNR regions. He also stated that he would announce further measures. The Prime Minister of Poland stated that Russia's actions are an act against Ukraine. He also said that additional sanctions should be taken immediately. In the meantime, Truss, the UK's Foreign Minister, stated that sanctions would be announced against Russia tomorrow as a response.

XAU/USD Forecast: Technical outlook

Technically speaking, gold is more upwardly biased than silver. The daily moving averages are well below the spot price of XAU/USD, and have a bullish slope. This, along with the breaking of a nine-month old downslope resistance trendline helped to exacerbate the uptrend and help XAU bulls reclaim $1900.

The $1,916 first resistance for XAU/USD would be the XAU/USD. Breaking the latter could expose January 2021 highs of $1,959 in the United States. Once cleared, this could open the door to $2,000.