Gold outlook: Price nears new record high as growing uncertainty continues to fuel safe haven demand

Slobodan Drvenica Windsor Brokers

XAU/USD

Gold price rose further on Thursday and pressure all-time high $2956 (Feb 24) after fresh post-US CPI acceleration took out last significant barriers at $2926/30.

Growing fears of economic slowdown on escalating trade war that contributes to scenario of more Fed rate cuts, along with lower than expected US inflation in February, further boosted demand for the yellow metal.

Technical studies on daily chart improved following the latest advance that extends into third straight day, as MA’s turned to full bullish setup and 14-d momentum broke into positive territory.

The latest action also contributes to signals that correction ($2956/$2832) is likely over and bulls may challenge new top for continuation of larger uptrend, paused for a healthy correction.

Firm break of $2956 trigger to expose targets at $2985 (Fibo 123.6% projection ff the upleg from $2832) and psychological $3000 barrier.

However, bulls may face increased headwinds at $2956 zone, due to significance of resistance, and consolidate before final break higher, with former pivots at $2930/26 (lower platform / Fibo 76.4%) offering solid supports which should keep the downside protected.

Res: 2956; 2985; 3000; 3003.
Sup: 2930; 2926; 2908; 2900.

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

1. R3 2981.72
2. R2 2961.16
3. R1 2947.26
PP 2926.7
1. S1 2912.8
2. S2 2892.24
3. S3 2878.34

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD challenges 1.1700, six-week lows

EUR/USD remains under heavy downside pressire in quite a dfrreadful start to the new trading week, putting the 1.1700 support to the test amid the marked rebound in the US Dollar. The flight-so-safety environment continues to support the Greenback following the escalating conflict in the Middle East.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold shifts its attention to $5,600 on fligh-to-safety mood

Gold climbs to levels last seen in late January past the $5,400 mark per troy ounce on Monday. The yellow metal’s strong uptick remains fuelled by incresing geopolitical tensions in the Middle East and the consequent demand for safer assets.

Bitcoin on brink of breakdown amid US-Iran war

Bitcoin (BTC) remains under pressure near the key support level of $65,700. Trading at $66,400 at the time of writing on Monday, a breakdown below this critical level would suggest a deeper correction ahead.

The week ahead: Conflict in the Middle East jolts markets

Events in the Middle East are obviously dominating financial markets this morning. The Brent crude oil price is extending gains and is higher by more than 8%, stock futures are pointing lower and the gold price is higher by more than 2%.

Pi Network Price Forecast: Core team offloads supply, weighing on PI recovery

Pi Network hovers below $0.1700, broadly steady at press time on Monday, attempting a recovery after a 2% loss the previous day. Sunday’s decline aligned with nearly 49 million PI tokens offloaded by the Pi Foundation, implying a spike in supply pressure that capped the prevailing four-day recovery.