Gold broke sharply and reached a new high at 2,070.40 in the afternoon American session. Commodity prices resumed their gains and WTI hit new highs at 130.50.

Gold price consolidates around the level 2,040 as US President Joe Biden and UK Prime Minister Boris Johnson have announced new sanctions against Russia amid its latest invasion of Ukraine.

XAU/USD is in a correction phase from the high 2,070. On the 1-hour chart, a symmetrical triangle pattern has formed. A break above this triangle could resume its bullish move towards +1/8 Murray at 2,062 and up to +2/8 Murray at 2,150.

The 21 SMA (2,057) has turned into dynamic support. A bounce around this level could offer the opportunity to buy back gold in the coming hours. In the short term, gold is likely to hit an all-time high of 2,150.

In the short term, the price of gold is overbought. The eagle indicator has reached 95-points that is a sign of an imminent technical correction. In the course of hours, it could break the 21 SMA at 2,027 and accelerate the decline towards the 200 EMA at 1,953.

The volatility of gold is very evident. After reaching 2,070, it made a correction of 4,700 pips in less than an hour, which means a price change of 47 dollars.

Under normal conditions, this range of movements takes a few days or even weeks, due to the uncertainty of the market regarding the Russian invasion. Gold is one of the most volatile assets after oil. For this reason, we must be very careful when investing.

Our trading plan is to buy above 2,027 with targets at 2,062. Closing above 2,070 on the daily chart, it could hit 2,150. On the contrary, sell below 2,025 with targets at the psychological level 2,000 and up to the 200 EMA at 1,953.