Analysis

XAU/USD outlook: Gold remains well supported by overheated geopoliticals

Gold

Spot gold price eases from new three month high ($1865) posted last Friday when the metal price rose 1.75% (the biggest one-day advance since 13 Oct 2021).

Overall structure remains firmly bullish as rising tensions over Ukraine continue to boost demand for safe-haven gold.

Bulls are likely to consolidate before resuming higher for attack at $1875/77 targets (50% retracement of $2074/$1676 pullback), violation of which would spark acceleration through $1900 barrier and unmask next Fibo level at $1922 (61.8%).

Probe through the bear-trendline off $2074 record high (at $1846) adds to bullish signals.

Shallow dips should ideally find ground at $1840 zone (rising 5DMA / near Fibo 23.6% of $1780/$1865 upleg) and offer better opportunities to re-enter bullish market and keep intact lower pivots at $1832 (Fibo 38.2% of 1780/$1865) and $1823 (converged 10/20DMA’s).

Res: 1865; 1877; 1881; 1900.
Sup: 1850; 1840; 1832; 1823.

Interested in XAU/USD technicals? Check out the key levels

 

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