XAU/USD outlook: Gold remains well supported by overheated geopoliticals
Gold
Spot gold price eases from new three month high ($1865) posted last Friday when the metal price rose 1.75% (the biggest one-day advance since 13 Oct 2021).
Overall structure remains firmly bullish as rising tensions over Ukraine continue to boost demand for safe-haven gold.
Bulls are likely to consolidate before resuming higher for attack at $1875/77 targets (50% retracement of $2074/$1676 pullback), violation of which would spark acceleration through $1900 barrier and unmask next Fibo level at $1922 (61.8%).
Probe through the bear-trendline off $2074 record high (at $1846) adds to bullish signals.
Shallow dips should ideally find ground at $1840 zone (rising 5DMA / near Fibo 23.6% of $1780/$1865 upleg) and offer better opportunities to re-enter bullish market and keep intact lower pivots at $1832 (Fibo 38.2% of 1780/$1865) and $1823 (converged 10/20DMA’s).
Res: 1865; 1877; 1881; 1900.
Sup: 1850; 1840; 1832; 1823.
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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.
