Gold Price Forecast: XAU/USD to see further gains while above $1,950
|Gold spent the first half of the week fluctuating in a relatively tight range above $1,920 but regained its traction after breaking above $1,950 on Thursday. XAU/USD needs to use $1,950 as support in order to extend its rebound, FXStreet’s Eren Sengezer reports.
Bullish tilt after the move above $1,950
“Investors grow increasingly concerned over the potential negative impact of a prolonged Russia-Ukraine conflict on global economic activity. A further escalation of geopolitical tensions should help the yellow metal limit its losses and vice versa.”
“The 20-day SMA and the Fibonacci 38.2% retracement of the latest uptrend seem to have formed a key technical level at $1,950. In case gold starts using that level as support, it faces an interim resistance at $1,965 (static level) before it can target $1,990 (Fibonacci 23.6% retracement) and $2,000 (psychological level).”
“XAU/USD could face renewed bearish pressure if it fails to hold above $1,950 and decline toward $1,920 (static level, lower limit of the consolidation channel). With a daily close below that level, the pair could test $1,900 (Fibonacci 61.8% retracement, 50-day 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.