On Friday gold was trading at around 1280 and has since bounced back above the 1300 mark. The precious metal topped out at 1316 but has since pulled back into 1310. Confidence certainly seems to have returned to gold, with some positioning on the Ukraine situation. With violence ramping up over the past few days, many feel a civil war is a strong possibility. While this is something no one wants to see, it certainly gives traders the safety first approach and gold is well placed to benefit. Traders are more likely to be looking to buy the dips in gold.
Already the Ukraine situation has been pushing up prices of other commodities such as wheat. There is a short term double bottom that has emerged on the chart and gold is also right on the 50% retracement of the drop from September last year to January this year. A close above the 50% retracement of 1308 would be a near-term positive sign for gold. In April, gold printed a high of 1331 and that could be where it heads should momentum pick up.