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Gold Price Forecast: XAU/USD surges and reached a 14-month-old highs at $1974, though stabilized around $1919

  • Gold printed a 14-month-old fresh high around $1,974 amid the Ukraine – Russia war escalation.
  • US Treasury yields fell, though the US Dollar strengthened across the board.
  • XAU/USD Price Forecast: If bulls hold above the $1916 mark, they could remain hopeful of reaching higher prices.

Gold (XAU/USD) climbs in the North American session, thought retreats from 14-months daily highs at $1,974.48, as the Ukraine – Russia conflict escalated, with Russia invading Ukraine, as a growing appetite for safe-haven assets increases, to the detriment of riskier assets. At press time, XAU/USD is trading at $1,919.50.

In the meantime, the US Treasury yields fall as the appetite for US Treasuries thrives. The US 10-year T-note yield dwindles six basis points sits at 1.918%, a headwind for the non-yielding metal. Contrarily, the greenback remains bid, moving in tandem with XAU/USD, with the US Dollar Index up 1.08%, currently at 97.23, retreating from the 97.73 level, last seen in July 2021.

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XAU/USD Price Forecast: Technical outlook

XAU/USD is upward biased, as depicted by the daily chart. Gold bull’s pushed the price towards a daily high at $1,974.78 and, on its way north, broke June 2021 highs at $1,916.60. If XAU bulls achieve a daily close above the latter, they could remain hopeful of keeping spot gold trading in the $1,916-$1,959 area.

The XAU/USD first resistance would be June 6 daily high at $1,959.06. Breach of the latter would expose February 24 daily high at $1,974.78, followed by a move towards $2,000.

 

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