XAU/USD outlook: Gold is heading towards $3,000 target
XAU/USD
Gold price continues to trend higher and hit new all-time high in early Thursday trading, driven by growing uncertainty over US tariffs and turbulent pollical conditions which fueled safe-haven demand.
Investors remain concerned that US tariff policies could spark a trade war and further undermine still fragile global economy.
In addition, President Trump’s U-turn in relations with Ukraine and Russia and growing tensions with the European Union, boost worries about deeper crisis (political and economic) keep traders alerted and ready for stronger migration into safety should the situation escalate.
From the technical point of view, the picture remains very bullish, with breach of $2950 barrier (the last significant obstacle on the way towards $3000) to open way for eventual attack at psychological $3000 barrier, with close above $2950 to verify positive signal.
However, headwinds at this zone should be anticipated, due to significance of the resistance and overbought conditions, but strongly favorable fundamentals are unlikely to leave much room for correction.
Supports lay at $2942 (former top); $2918 (Wednesday’s low); $2900 (psychological) and $2876 (Feb 14 trough).
Res: 2961; 2983; 1991; 3000.
Sup: 2942; 2918; 2900; 2876.
Interested in XAU/USD technicals? Check out the key levels
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.
