Gold slowly declines. No acceptance over 2000 USD was seen. Gold prices could be driven by geopolitical tensions and banking crises.

Gold  fundamental review

As acceptance above the $2000 mark continues elusive, gold prices gradually fell in Asian trade. A slight improvement in mood and some dollar strength helped to reduce the demand for safe-haven assets.

The worries about Deutsche Bank on Friday did not lead to a prolonged break and acceptance above the $2000 mark. News of the SVB bank’s acquisition by First Citizens Bank, which will get a line of credit from the FDIC was also announced during the Asian session. The metal’s value is still in uncertain state. Though, as regional US banks continue to be on alert over inadequate investment worries that could rear their ugly heads.

Gold saw supported Russian nuclear weapons in Belarus

Geopolitical issues were also brought back into the spotlight over the weekend –  when Russian President Vladimir Putin announced his plan to use tactical nuclear weapons in Belarus. NATO officials responded angrily to the statement, labeling Putin’s remarks reckless and risky. Gold prices may be affected further going forward by how markets react to these events and if we observe signals of worsening.

Since the majority of the important US releases are scheduled for later in the week. We do not have a lot of information for the initial part of the week. We will soon receive statistics regarding CB Consumer Confidence, GDP Growth Rate, and the Fed’s favored inflation indicator, Core PCE.

Economic Activity Schedule

Technical Perspective

Although gold has recently performed well, given the multitude of variables in play. The price of the metal may experience wild fluctuations in the future. As previously stated, shifts in the geopolitical environment and a resurgence of bank sector anxieties could cause gold prices to rise toward the $2000 mark.

A short-term view is probably more appropriate for the present climate. On the other hand, a better mood could lead to an extended downside for gold.

With immediate support at the $1960 handle, the $2000 level’s ongoing rejection is still crucial for gold. A repeat of the $1934 support region becomes possible on a breach below. For the daily candle to finish above $2000 on the upside, the pricey metal’s bullish momentum must continue.

Gold Daily Simple Moving Averages