Gold prices rose in line with some concerns about the geopolitical crisis between the Russian-Ukrainian countries amplifying gains. Gold prices have had a solid start to 2022, rising more than 2%, as traders brace for a tighter Federal Reserve policy decision.

Reuters has reported that Russia's Foreign Minister, Sergey Lavrov, has also advised Russian President Vladimir Putin to seek diplomatic solutions to the crises.

Russia itself has demanded that Ukraine be denied membership in NATO, adding that it wants the organization to reduce its presence in the Eastern European region.

Meanwhile, US national security adviser Jake Sullivan said over the weekend that an attack from Russia on Ukraine could happen at any time.

Wang Tao, a Reuters Technical Analyst, estimates that gold prices could still rise again. According to him, the price of the gold commodity will rise to the range of US$ 1,872-1,879/troy ounce.

Russian Attack That Could Happen at Any Time

Currently, the price of gold itself is in wave C, this wave has started from US$ 1,753.3/troy ounces. In full force, this wave could also bring the price of gold to the US$1,900-1,946/troy ounce area, Wang explained in his research.

Meanwhile, the point of support for the price of gold in the market, continued Wang, is around the US $ 1,850/troy ounce. A break of this point will certainly bring the price of gold down towards US$ 1,841/troy ounce.

However, so far, the price of gold has been able to maintain some quite positive trends. Now investors can set a target at the point of US $ 1,930/troy ounce. With a sharp increase on February 11, 2022, it seems that the target is becoming more realistic.

On the other hand, US Secretary of State Antony Blinken has ordered the American embassy in Kyiv, Ukraine, to be closed. He also cited the "dramatic acceleration in some buildup of Russian troops" on the Ukrainian regional border for closures.

Gold itself is setting out to come back to on course thanks to the behavior of some investors seeking protection against the Fed's excessively aggressive modification cycle that would threaten the expansion method, wrote Edward Moya from Oanda last week.

Gold hit an eight-month high above $1,900 an ounce on Thursday as investors flooded the yellow metal and other safe havens amid rising tensions over the Russia-Ukraine conflict.

Gold Moves Higher Since 2020

The most-active gold contract on New York's Comex in April closed $30.50, or 1.6%, at $1,902 an ounce. The session high was $1,903.65. The last time gold traded above it was on June 11, making Thursday's peak its highest in eight months.

This year, Comex's most-active contract has gained 3.6%, the most since 2020 when it hit a record high above $2,100. Gold's rally started in early December but has picked up this year on signs US inflation won't stop.

The Consumer Price Index grew by 7.0% and 7.5% in the year to December and January, respectively, the highest since 1982 for both. The economy itself only grew 5.7% for 2021.

While Inflation has been a central theme of gold's rally, Russia-Ukraine tensions have reintroduced part that has been missing from gold for a moment — particularly the political science hedge that bullion was additionally celebrated for at just one occasion.

Geopolitics was the catalyst for gold's move Thursday towards $1,900, analysts said. Prices were pushed higher on flights to safety as Russia/NATO/US tensions escalated, said analyst Greg Michalowski at platform ForexLive.

Neither side is getting any closer to a friendly agreement. Michalowski said that based on his daily chart, next month Comex gold has moved above the halfway point of 50% of its move down from its August 2020 record high.

That level was at $1876.02, he said, noting that a break occurred Thursday, after a failed attempt earlier this week to break that resistance.