Gold Price Forecast: XAU/USD aims for fresh record highs

XAU/USD Current price: $2,214.47

• Hawkish comments from Fed Governor Chris Waller propelled markets ahead of the long weekend.
• The US will release the Personal Consumption Expenditures Price Index on Friday.
• XAU/USD extended gains for a fourth consecutive day, aims to reach fresh record highs.

Gold price keeps advancing on Thursday, now trading around $2,215. The XAU/USD pair is up for a fourth consecutive day and flirts with record highs as market players assess the latest comments from Federal Reserve (Fed) officials. Late on Wednesday,  Fed Governor Chris Waller said he is not in a rush to cut the policy rate, as recent data suggests the central bank may need to maintain the current restrictive monetary policy for longer to help keep inflation on a sustainable trajectory toward 2%.

Waller’s hawkish words sent the US Dollar higher across the FX board while boosting demand for equities. Gold, however, maintained its upward route, ignoring resurgent USD demand. Wall Street’s opening brought some stability on Thursday as investors gear up for a long weekend, with several markets closed on Friday amid the Easter Holiday and the release of the United States (US) Personal Consumption Expenditures (PCE) Price Index. The core reading is the Fed’s favorite inflation gauge, and the report should provide additional clues on whether a rate cut is likely next June.

US indexes maintain a positive tone, although gains are modest. Markets are already entering wait-and-see mode. At the same time, government bonds turned higher, weighing on yields. The 10-year note currently offers 4.18%, down 1 basis point (bps) from its daily opening.

XAU/USD short-term technical outlook

From a technical point of view, XAU/USD rally is far from done. The daily chart shows the bright metal keeps rallying above all its moving averages, with the 20 Simple Moving Average (SMA) maintaining its firmly bullish slope far above the longer ones. At the same time, technical indicators develop within positive levels, although with uneven strength. The Momentum indicator remains pretty much flat above its 100 line, while the Relative Strength Index (RSI) indicator advances within overbought territory without signs of bullish exhaustion.

Technical readings in the 4-hour chart hint at higher highs ahead. XAU/USD extends its advance beyond bullish moving averages, with the 20 SMA currently providing dynamic support at around $2,186.20. Finally, the Momentum indicator eases within positive levels but remains above its midline. The RSI indicator, on the other hand, keeps heading north, approaching overbought territory, supporting a bullish continuation.

Support levels: 2,200.00 2,186.20 2,174.50

Resistance levels: 2,222.80 2,235.00 2,250.00