Gold continues to find support at $1900 per ounce as geopolitical tensions escalate and has now been labeled as a crisis. As of 4:25 PM EST gold futures basis, the most active April 2022 Comex contract is currently fixed at $1910.70 after factoring in today’s gain of $3.30 or 0.17%. Gold futures opened at $1901.20 today, traded to a high of $1912.90 and a low of $1891.10.

Gold prices oscillated between today’s low of $1889.70 and high of $1918.30. As of 4:15 PM, gold futures basis's the most active April contract is currently fixed at $1901.30 after factoring in today’s gain of $1.50 or 0.07%. This article will focus upon today’s high as it occurs at a key level of possible strong resistance.

Market participants witnessed the continuation of a strong rally this week, taking gold substantially higher over the last three weeks. As this week comes to a close, gold futures have had substantial gains of approximately $38 or 2.04%. Gold opened at approximately $1862 on Monday, and as of 5:52 PM, EST is currently fixed at $1900.20.

Editor's Note: To view interview with Kitco's David Lin click below

Gold price primed for 'substantial' move from threat of war and inflation - Gary Wagner | The Gold Forecast

Editor's Note: To view interview with Kitco's David Lin click below

Gold price primed for 'substantial' move from threat of war and inflation - Gary Wagner | The Gold Forecast

Precious metals across the board sustained moderate to strong price declines in light of recent news suggesting that the geopolitical tension between Russia and Ukraine has begun to de-escalate. Recent news indicated that some Russian troops that were positioned near the border of Ukraine began to leave and return to their base.

As geopolitical tensions continue to rise on the border of Russia and Ukraine, both gold and the U.S. dollar are truly acting as safe-haven assets. Currently, there has not been a diplomatic solution to the geopolitical tensions as Russia continues to move troops and equipment to the border of Ukraine and Russia. Russia continues to have military exercises on two of Ukraine’s borders.

Once again there are dual components that have created the perfect conditions for gold to run dramatically higher. First was yesterday’s inflationary data indicating that the CPI index has increased to 7.5% in January. Secondly, the geopolitical tensions in Ukraine and Russia have continued to strengthen.

The cost of goods and services in the United States climbed 0.6% taking inflationary levels to the highest level seen since February 1982. The forecast by economists polled by Bloomberg News was looking for an increase in inflationary data, however, they underestimated the spiraling costs of goods and services in America.

This week's most important event will occur tomorrow when the Consumer Price Index report for January is published. Last month the CPI index rose to a 40 year high in December, coming in at 7%. On January 28, the BEA reported that the PCE index grew to 5.8% in December taking the preferred index used by the Federal Reserve to a 40-year high.