Gold Price Forecast: XAU/USD aims to challenge the $2,200 level
XAU/USD Current price: $2,192.20
- Financial markets lack volatility in a shortened week without much relevant data.
- The United States will release the February PCE Price Index next Friday.
- XAU/USD lacks directional momentum, but bulls lead and aim for fresh record highs.
XAU/USD trades a tad higher on Wednesday, hovering around $2,190. Activity across financial boards remains constrained amid the absence of relevant macroeconomic data and as speculative interest gears up for a long weekend due to the Easter holidays. Investors also await an update on the United States (US) inflation, as the country will unveil the February Personal Consumption Expenditures (PCE) Price Index.
The Federal Reserve (Fed) bases its monetary policy decisions on the core PCE Price Index, foreseen at 2.8% YoY, matching January’s figure. On a monthly basis, the index is expected to rise by 0.3%, easing from the previous 0.4%.
Meanwhile, attention remains on Fed officials. By the end of the American session, Board Member Christopher Waller will speak, and market players will try to take clues about his willingness to cut rates.
XAU/USD short-term technical outlook
Technically, XAU/USD is up for a third consecutive day, which skews the risk to the upside. The pair keeps posting lower lows while advancing above bullish moving averages. The 20 Simple Moving Average (SMA) maintains a firmly bullish slope far above the longer ones and provides dynamic support at around $2,154. Meanwhile, technical indicators grind higher within positive levels, in line with bulls’ dominance.
In the near term, and according to the 4-hour chart, however, XAU/USD is neutral-to-bullish. Technical indicators head nowhere but hold well above their midlines, limiting the odds for a bearish movement. At the same time, the pair met intraday buyers around a mildly bullish 20 SMA, which develops above bullish longer ones.
Support levels: 2,183.40 2,169.50 2,154.00
Resistance levels: 2,200 2,211.70 2,222.80
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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.
