Gold Plunges as Russia-Ukraine Tensions Might Be Easing

Gold Plunges as Russia-Ukraine Tensions Might Be Easing
Safe-haven assets, such as gold, cratered today following the recent news from Russia.
At the time of writing, gold was down more than 1%, falling from three-month highs and trading near 1,850 USD.

Shortly after media reports suggested a Russian invasion of Ukraine was imminent, Moscow announced that it was withdrawing all troops from the border and then claimed “western propaganda” had failed.

Major General Igor Konashenkov announced that all Russian troops would begin to be withdrawn from the border region. “As the forces complete their military exercises, they will, as always, complete a multimodal march back to their permanent bases,” Konashenkov stated. 

“The divisions of the South and West Military Districts have finished their tasks and have already begun loading the rail and automobile transport, and today will begin moving back to their military garrisons.”

So far, it looks like gold has failed at November highs, possibly forming a double top pattern. That could be a strong bearish signal, but the pattern is far away from being confirmed. 

Considering the recent rally, gold seems overbought, which might have prompted the recent sell-off. The metal is now testing January highs near 1,850 USD, and if that level is not held, we might see a decline toward 1,830 USD.

On the upside, the key resistance now stands in the 1,870 USD zone, and if gold jumps above it, we might see another leg higher to 1,900 USD.
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