Gold Price News and Forecast: XAU/USD clings to 6.5-year highs
|Gold Completes 38.2% Retracement - Buying Setup Ahead!
The safe-haven-metal prices flashing red and dropped from the 6-year high because traders are cautious and are waiting for a fresh hint about what will happen ahead mainly due to de-escalating tension between the United States and Iran.
The safe-haven-metal prices surged more than 2% during the past two days, mainly due to increasing safe-haven demand in the wake of the US-Iran war.
The decline in the yellow-metal came today earlier in the morning despite the report that the United States has sent more troops to the Mideast and speculations that Tehran will retaliate for the U.S. airstrike that killed General Qassem Soleimani last week.
Meanwhile, global equities recovered today, with Chinese stocks gaining almost 1% in morning trade. Geopolitical headlines will take a driver seat in the calendar because of the market trader's stay on the wait-and-see mode. Read more...
Gold Price Analysis: XAU/USD clings to 6.5-year highs
The yellow metal is trading in a bull trend above its main monthly simple moving averages (SMAs). The market is attempting to have a convincing break above the 1560/1600 price zone. If the buyers overcome this crucial resistance zone, the market could climb to the 1730 and 1900 resistance levels.
Gold daily chart
The market is clinging to gains near 6.5-year highs. However, if the bulls fail to surpass the 1560/1600 resistance zone and it gets faded, the metal could drop back to 1445 support. After a wich, a correction down to the 1350 and 1250 levels could potentially be on the cards. Read more...
Gold consolidated into the Wall Street close, elevated in risk-off conditions
Gold prices have been consolidating in the latter part of the US session and ending on Wall Street around 0.3% higher having travelled between a low of $1,555.30 and a high of $1,573.14 to end around $1,569.89.
Gold prices can remain elevated as markets enter the New Year cautious and in anticipation of potential escalations on the geopolitical front considering a half baked phase-one trade deal that is yet to be signed between the US and China, as well as the latest, and far more worrisome, dramatic escalation of risks of war between Iran and the US.
Investment demand still to grow this year
"The safe-haven appeal may have added too much oomph to gold's rally, as the added demand sent the yellow metal's to multi-year highs, but underlying investment demand is still set to grow this year," analysts at TD Securities argued. Read more...
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