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