Gold Price Forecast: Easing on a better market mood
XAU/USD Current price: $1,900.17
- Russian hostilities on Ukraine continues, although peace talks cooled a bit market tensions.
- Wall Street is trimming early losses, with US indexes trading mixed.
- XAU/USD is a long-term bullish perspective firmly in place despite near-term losses expected.
Spot gold hovers around $1,900 a troy ounce, retaining modest intraday gains. Gold Price gapped higher at the weekly opening amid continued tensions in Eastern Europe. Russian attacks on Ukraine escalated over the weekend, and there are no signs Moscow will give up despite the West's massive financial sanctions.
The first round of peace talks between representatives from both Russia and Ukraine in Belarus has come to an end. Russia has demanded Kyiv become neutral and stay away from NATO while President Volodymyr Zelenskyy has demanded the complete cessation of hostilities. Officials returned to their respective capitals for further consultations before the second round of talks.
The market mood has improved, despite the conflict continuing and civil casualties keep increasing. A better perception of risk is weighing on the precious metal and helps Wall Street trim part of its early losses, with US indexes now mixed.
Gold price short-term technical outlook
The XAU/USD pair maintains its bullish stance in the daily chart, as technical indicators have barely corrected extreme overbought conditions before resuming their advances. Additionally, the bright metal keeps developing above all of its moving averages, with the 20 SMA heading firmly higher below the longer ones, reflecting limited selling interest.
In the near term, and according to the 4-hour chart, gold seems poised to move lower. Sellers have continuously rejected advances at around a flat 20 SMA, currently providing dynamic resistance at around 1,913. The longer moving averages remain below the current level, although technical indicators have accelerated their slide within negative levels. The slide will likely gain bearish momentum on a break below 1,893.10, the immediate support level.
Support levels: 1.893.10 1,882.90 1,876.85
Resistance levels: 1,913.00 1,925.30 1,938.10
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Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
