Its all about Ukraine today as it has been for a few days now. But as the tensions rise between Russia, USA, EU about Ukraine it all adds up that investors are turning to safe heavens as fast as they can. In fact Asian stocks and risky currencies like the Aussie and emerging markets currencies are depreciating against ‘safe heavens’ like the JPY, CHF and gold. In fact JPY is up 0.4% against the greenback and 0.6% against the euro, whereas XAU is up 1.3% already. Energy prices are also up on fears of lost supply. So for the moment all eyes are on Ukraine and how this situation will develop.
XAUUSD Daily Chart:
The precious metal is regarded as a safe heaven and it’s no wonder why it has been ‘shinning’ so much lately. 1345 area provides resistance for the moment but a clear break above might be good news for bulls.
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