Gold Price Forecast: XAU/USD needs a sustained move above $2,005 to unleash additional upside
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get all exclusive analysis, access our analysis and get Gold and signals alerts
Elevate your trading Journey.
UPGRADE- Gold price is correcting lower but downside appears limited amid firmer oil prices.
- Risk sentiment has turned sour again amid fresh reports of the US planning a ban on Russian oil imports.
- Gold price looks to recapture the wedge hurdle at $2,005 on buying resurgence.
Gold price is on a corrective downside, in an obvious move after the three-day non-stop rally to the highest level in a year, reached at $2,003 on Monday. The bright metal faced rejection once again at the $2,000 mark, giving investors an excuse to take profits off the table. Meanwhile, oil prices eased from eight-year highs, offering some temporary relief to the market. Although risk-off flows seem to have returned and oil prices have resumed their uptrend following another report, citing that the US is likely to move ahead with their plan to ban the Russian oil imports, without the participation from their allies, per Reuters.
Looking ahead, gold price will continue to find the dip-buying demand, as the Russia-Ukraine crisis is far from over. Russia’s invasion of Ukraine will continue until Ukraine surrenders, according to Russia’s President Vladimir Putin’s statement. Tuesday’s data docket is light on both sides of the Atlantic, keeping the focus on the geopolitical developments and the oil price action, which will have a significant impact on gold trades.
Gold Price Chart - Technical outlook
Gold: Four-hour chart
The overnight correction in gold price has offered the much-needed impetus to bulls, as they keep their sights on the $2,034 level.
Also, the Relative Strength Index (RSI) has retraced from the overbought territory while above 50.00, pointing upwards once again. The leading indicator suggests that there remains room to rise for gold price.
That said, the renewed upside could test a two-week-old rising wedge resistance at $2,005. That could emerge as a tough nut to crack for bulls, as the natural tendency of the rising wedge to yield a downside breakout.
If the bulls, however, defy the bearish odds, then a fresh advance towards $2,034, the previous triangle target, cannot be ruled out.
On the flip side, the intraday lows of $1,981 will be tested initially should the correction pick up pace.
The next downside target is seen at Monday’s low of $1,961, which also coincides with the bullish 21-Simple Moving Average (SMA).
- Gold price is correcting lower but downside appears limited amid firmer oil prices.
- Risk sentiment has turned sour again amid fresh reports of the US planning a ban on Russian oil imports.
- Gold price looks to recapture the wedge hurdle at $2,005 on buying resurgence.
Gold price is on a corrective downside, in an obvious move after the three-day non-stop rally to the highest level in a year, reached at $2,003 on Monday. The bright metal faced rejection once again at the $2,000 mark, giving investors an excuse to take profits off the table. Meanwhile, oil prices eased from eight-year highs, offering some temporary relief to the market. Although risk-off flows seem to have returned and oil prices have resumed their uptrend following another report, citing that the US is likely to move ahead with their plan to ban the Russian oil imports, without the participation from their allies, per Reuters.
Looking ahead, gold price will continue to find the dip-buying demand, as the Russia-Ukraine crisis is far from over. Russia’s invasion of Ukraine will continue until Ukraine surrenders, according to Russia’s President Vladimir Putin’s statement. Tuesday’s data docket is light on both sides of the Atlantic, keeping the focus on the geopolitical developments and the oil price action, which will have a significant impact on gold trades.
Gold Price Chart - Technical outlook
Gold: Four-hour chart
The overnight correction in gold price has offered the much-needed impetus to bulls, as they keep their sights on the $2,034 level.
Also, the Relative Strength Index (RSI) has retraced from the overbought territory while above 50.00, pointing upwards once again. The leading indicator suggests that there remains room to rise for gold price.
That said, the renewed upside could test a two-week-old rising wedge resistance at $2,005. That could emerge as a tough nut to crack for bulls, as the natural tendency of the rising wedge to yield a downside breakout.
If the bulls, however, defy the bearish odds, then a fresh advance towards $2,034, the previous triangle target, cannot be ruled out.
On the flip side, the intraday lows of $1,981 will be tested initially should the correction pick up pace.
The next downside target is seen at Monday’s low of $1,961, which also coincides with the bullish 21-Simple Moving Average (SMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.