GOLD PRICES REMAIN HIGH AS SAFE-HAVEN DEMAND RISES

Global stocks were relatively mixed on Tuesday as investors watched the ongoing crisis in Ukraine. In Germany, the DAX index rose by 0.70% while the CAC 40 and Stoxx rose by over 50 basis points. Elsewhere, in the United States, futures tied to the Dow Jones and Nasdaq 100 rose modestly. The performance was likely because Germany rejected pressure to cut off Russian oil and gas. Instead, Olaf Scholz’s government said that it will aim to gradually reduce the amount of product it buys from Russia. There are also worries that Russia will halt supplying gas to Germany using the Nord Stream 1 project.

Commodity prices remained at elevated levels because of the crisis. Oil prices jumped sharply as OPEC seems unwilling to intervene. Brent jumped to $126 while West Texas Intermediate (WTI) rose to $122. In a statement, Shell announced that it will stop buying oil from Russia and said that it will close its gas stations in the country. Precious metals like gold and silver also remained at elevated levels because of the rush to safety amid the sanctions. Wheat prices jumped to an all-time high because Russia and Ukraine are the biggest producers. The same is true with palladium and platinum prices.

The euro remained in a tight range as investors reflected on the recent sell-off and the ceasefire in Ukraine. Data published by Eurostat showed that the region’s economy expanded by 4.6% in the fourth quarter in line with estimates. It rose by 0.35 on a quarter-on-quarter basis. In the same period, the employment change rose by 2.2%. Elsewhere, in Japan, the country’s overtime pay rose by 4.4% while overall wage income rose to 0.9%.

EURUSD

The EURUSD pair was in a tight range today after experiencing a major sell-off in the past few days. The pair is trading at 1.0897, where it has been in the past few days. It has also moved slightly below the 25-day and 50-day moving averages and formed a bearish flag pattern. The Relative Strength Index has moved above the oversold level. Therefore, the pair will likely have a bearish breakout in the coming days.

ETHUSD

The ETHUSD pair held steady on Tuesday as cryptocurrency prices attempted to bounce back. The pair is trading at 2,593, which is higher than this week’s low of 2,440. On the four-hour chart, the pair is along the middle line of the Bollinger Bands while oscillators have started pointing higher. Still, there is a likelihood that this relief rally will fade.

XAUUSD

The XAUUSD pair rose to a high of 2,020, which is close to its all-time high. It has moved above the short and long-term moving averages. It also moved above the key resistance level at 2,000. The pair has also moved above all moving averages while the Relative Strength Index has moved to the overbought level. The pair will likely keep rising in the near term.