April will be a rather data-heavy month, meaning there are French presidential elections, interest rates, and FOMC meetings, which all potentially affect precious metal prices in different currencies.
Let’s start with fundamental news, potentially affecting gold prices to move, especially since the war in Europe, Ukraine does not seem to end any time soon.
Russia is one of the world’s top gold producers. Still, after the Kremlin moved soldiers into Ukraine in February, the country’s refiners were forbidden from exporting bullion into the world’s largest market, London.
On March 25, the Russian Central Bank said it would buy gold at a fixed price of 5000 roubles a gram until June 30, Reuters wrote.
On April 7, the Russian Central Bank said that due to a “significant change in the market conditions, “it would buy gold from commercial banks at a negotiated price from April 8.
Since that announcement, the Russian rouble has strengthened sharply against the dollar.
March inflation data is scheduled to be released on Tuesday, and it will be one of the key releases to monitor. According to market consensus predictions, annual inflation is expected to reach 8.4%, a record four-decade high.
Read more in-depth about this topic from Kitco News.
*Red lines are downtrend. The heavy red line is the long-term trendline.
*Green lines are uptrend. The heavy green line is a long-term trendline.
*Blue lines are short term support & resistance lines
(Picture 1. Trendlines & Support/Resistance)
In conclusion, watching what the gold price will do in this data-heavy week is very important. When gold price breaks either support or resistance, the price will probably make a huge spike. Special interests are in the March inflation rates meeting on Tuesday (12. April 2022).
Disclaimer: This article is for informational purposes only and is not intended as an investment analysis or recommendation to sell or buy commodities. Tavex is not responsible for any decisions made based on this information. Investing is associated with opportunities and risks, and the market value of commodities can both increase and decrease. Past or future yields on the commodities and financial ratios shown above do not represent a promise or an indication of future earnings