• Gold is heading back above $2,900 in a rather soft trading day. 
• Geopolitical headlines will take over markets this week with headlines around Ukraine.  
• A daily close above $2,900 would be beneficial for more upside in Gold this week.

Gold’s price (XAU/USD) is orbiting around $2,900 again at the time of writing on Monday after its steep correction on Friday. While United States (US) markets are closed due to the President’s Day bank holiday, the Federal Reserve (Fed) is not. On a rather windstill trading day, no less than three Fed speakers will issue comments in an otherwise empty macroeconomic calendar. 

Meanwhile, the weekend was filled again with several geopolitical news and comments. US President Donald Trump and Russian President Vladimir Putin are set to meet each other in Saudi Arabia to discuss peace within Ukraine. Neither Ukraine nor Europe are invited to these talks, while both US and Russian officials are already underway. 
 

Daily digest market movers: US officials are landing in Riyadh

• Market participants are waiting for more insights on President Trump’s reciprocal tariff plans, which could heighten global trade tensions. Next to that, levies on automobiles would be coming as soon as April 2, Bloomberg reports. 
• If Senator Cynthia Lummis’ proposal becomes more concrete, Bitcoin could join Gold. The senator suggested adding Bitcoin to the US reserves on Sunday, highlighting the blockchain network's transparency and accessibility.
• At 14:30 GMT, Federal Reserve Bank of Philadelphia Patrick Harker delivers a speech on the economic outlook at the Central Banking Series Conference at the University of the Bahamas in Nassau.
• At 15:20 GMT, Fed Governor Michelle W. Bowman delivers brief remarks on the economy and bank regulation at the American Bankers Association (ABA) Conference for Community Bankers in Phoenix, Arizona.
• Closing off this Monday, at 23:00 GMT, Fed Governor Christopher J. Waller speaks on the economic outlook at the UNSW Macroeconomic Workshop in Sydney, Australia.
   

Technical Analysis: False breaks 

Gold recovers and trades back above $2,900 on Monday following the near 1.5% decline on Friday. However, keep in mind that US bond markets are closed on Monday due to the President’s Day bank holiday. Look out for the headlines on Ukraine and possible new announcements on tariffs. 

The first support level on Monday, the S1 support, stands at $2,859. Further down, the S2 support at $2,836 should act as a safeguard and prevent any additional declines to the more significant $2,790 level (October 31, 2024, high).

On the upside, the Daily Pivot at $2,899 is the first level to reclaim again. Next, the R1 resistance at $2,922 is the first level that needs to be recovered, followed by the R2 resistance at $2,962. Further up, the $3,000 psychological level could be next.

(Click on image to enlarge)

XAU/USD: Daily Chart

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