Gold Prices Higher Over Russia Coup Fears

Safe-Haven Demand for GoldGold prices are seeing a firmer start to the week against a backdrop of weaker stock prices. Traders are digesting news from over the weekend of an aborted military coup in Russia. The Wagner mercenaries, which took over a city in Southern Russia, called off their March on Moscow, but warned Putin to comply with their demands or risk a proper attack. The event has thrown the Russia-Ukraine war into great uncertainty with fears of how violence might escalate if the Wagner group succeeded in taking power. Stocks have been sharply lower on Monday, leading to fresh safe-haven demand for gold.Central Bank ImpactGold prices have been under pressure over recent weeks given the fresh focus on hawkish central bank expectations. With the Fed widely expected to hike further after pausing this month and both the ECB and BOE signalling fresh hikes to come, global yields have been rising. However, geopolitical uncertainty looks to be taking centre stage at the start of the week, keeping gold prices underpinned for now. Later this week, expect USD GDP and core PCE to cause some fluctuations in USD which should impact gold prices. We also have a raft of central bank speakers across the middle of the week to monitor.Technical ViewsGoldThe reversal lower in gold from the 2069.41 level has seen the market breaking down below the bull channel lows and the 1973.51 level. While price holds below here, the focus is on a further push lower down towards 1871.04 next in line with bearish momentum studies readings.