Gold Price Forecast: XAU/USD hits levels above $1850 for the first time in two months and retreats
- Metals and US stocks remain volatile amid concerns across markets.
- XAU/USD rises $10 in a few minutes and then erases gains.
- Positive outlook for gold while above $1830.
A quick drop in US yields boosted XAU/USD that jumped from $1840 to $1853, reaching the highest level since November 19. It then pulled back all the way to $1840 and now is approaching the $1850 area again.
Prices remain volatile in metals, stocks and bonds. The spike in gold took place amid a quick decline in US yields and after US stocks trimmed losses. The Dow Jones is falling 1.08% and the Nasdaq 2.37%, both indices off lows.
Market participants await the outcome of the FOMC meeting. On Wednesday, the central bank is expected to give clear signals of a March rate hike.
Short-term outlook
Volatility across financial markets is also affecting gold that can jump and then reverse sharply in a few minutes. The outlook for gold remains biased to the upside while above $1830. A side below would clear the way for to a test of the 20-day simple moving average at $1820.
A consolidation above $1850 would be a positive development pointing to more gain with a target at the next resistance zone at $1865/70.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
