• Gold Price edges higher as Easter Monday notices flight to safety.
• Russia – Ukraine crisis and the recession risks favors the safe-haven assets.
• Market will keep an eye on the FOMC Bullard’s speech due later today.

The yellow metal traded high against the US dollar during Monday trading session as investors flock towards ultimate safe haven amid a protracted Russia-Ukraine war and recession risks.

On Saturday, Russia’s warplanes bombed Lviv and its missiles struck Kyiv as Moscow followed through on a threat to launch more long-range attacks on Ukrainian cities after the sinking of its Black Sea Fleet flagship. Ukraine’s military said Russian warplanes that took off from Belarus had also fired missiles at the Lviv region near the Polish border, where four cruise missiles were shot down by Ukrainian air defences.

Russia said it also struck a military vehicle repair factory in Mykolaiv, a city close to the southern front. The attacks followed Russia’s announcement on Friday that it would intensify long-range strikes in retaliation for unspecified acts of “sabotage” and “terrorism”, hours after it confirmed the sinking of its Black Sea flagship, the Moskva. Kyiv and Washington say the ship was hit by Ukrainian missiles, a striking display of Ukraine’s military success against a far better-armed foe. Moscow says it sank after a fire.

Whereas, The European Union’s forthcoming sanctions on Russia will target banks, in particular Sberbank SBER.MM , as well as oil, the head of the European Commission Ursula von der Leyen told a German newspaper. The EU has so far spared Russia’s largest bank from previous sanctions rounds because it, along with Gazprombank, is one of the main channels for payments for Russian oil and gas, which EU countries have been buying despite the conflict in Ukraine. The European Union’s forthcoming sanctions on Russia will target banks, in particular Sberbank SBER.MM , as well as oil, the head of the European Commission Ursula von der Leyen told a German newspaper.

Meanwhile, China is expected to report a sharp deterioration in economic activity in March as COVID-19 outbreaks and lockdowns hit consumers and factories, although first-quarter growth may have perked up due to a strong start early in the year.

U.S. stock investors are worried that geopolitical uncertainty and the Federal Reserve’s fight against inflation could dent economic growth are heading for defensive sectors they believe can better weather turbulent times and tend to offer strong dividends.

Market will focus on the speech from the St. Louis Fed President and FOMC member James Bullard, which will provide insights into the likely monetary policy action by the Fed.

XAU/USD 4 Hour Chart:

Support: 1962.1 (S1), 1951.1 (S2), 1942.0 (S3).

Resistance: 1982.1 (R1), 1991.2 (R2), 2002.2 (R3).

Amidst all the catalysts favoring the demand for safe haven, we expect a bullish trend for XAU/USD.