Gold Price Forecast: XAU/USD looks to reclaim $1914 amid risk-aversion theme

Gold price is eyeing $1914.34 as investors prefer precious metal amid safe-haven appeal.
The tensions between Russia and Ukraine escalated after the latter declared a state of emergency.
Investors are eyeing Thursday's US GDP and Initial Jobless Claims.

Sagar Dua FXStreet

Gold price is set to reclaim Tuesday’s high at $1914.34 as the uncertainty in the market reaches ceilings amid the geopolitical tensions between Russia and Ukraine. The economy is bracing for high inflation in the coming trading sessions as escalating sanctions fall on Russia to punish it for violating international law may continue to push oil prices higher.

On Wednesday, Ukraine called its citizens back from Russia and declared a state of emergency. While, Moscow began evacuating its Kyiv embassy, in the latest ominous signs for Ukrainians who fear an all-out Russian military onslaught, as per Reuters.

The lack of positive developments over the Russia-Ukraine tussle has put the investors on their toes and investors are very harsh on risk-sensitive assets.

The galloping volatility in the market has improved the safe-haven appeal and investors are pouring funds into the precious metal.

Meanwhile, the US dollar index (DXY) surpasses 96.00 on expectations of improvement in US Gross Domestic Product (GDP) numbers and Initial Jobless Claims, which are due on Thursday. An aggressive tightening policy by the Federal Reserve (Fed) in March’s monetary policy meeting is losing momentum as the economy can go through tough times amid the expectation of the most destructive war since 1945.

Gold Technical Analysis

On a 15-minute scale, XAU/USD has retreated after kissing the trendline placed from Monday’s low of $1886.66. The precious metal is expected to extend gains towards Monday’s high at $1914.34. The Relative Strength Index (RSI) (14) is likely to strengthen bulls after overstepping 60.00.

Gold 15-min chart

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

GBP/USD climbs to two-day highs past 1.3200

GBP/USD picks up extra pace and surpasses the 1.3200 threshold on Thursday. That said, Cable manages to shrug off initial weakness and regain balance on the back of the fresh selling pressure hurting the Greenback.

EUR/USD pushes harder; focus is back to 1.1400

EUR/USD’s daily recovery now gathers steam, sending spot to the vicinity of the key 1.1400 barrier on Thursday. The pair’s bounce follows some decent loss of momentum in the US Dollar in the wake of the release of US PCE data and the weekly labour market readings.

Gold bounces from 2026 lows, remains pressured

Gold reverses part of its recent weakness on Thursday, managing to reclaim the area just above the $4,000 mark per troy ounce. The precious metal regains traction on the back of renewed selling interest in the Greenback, although expectations of rate hikes by the Fed are likely to keep buyers on the sidelines for now.

Bitcoin tests $60,000 as whales sell off – Aave and Jupiter show resilience

The broader cryptocurrency market remains under intense selling pressure, with Bitcoin back at $60,000 for the third time this year. On-chain data shows selling pressure from large-wallet investors, commonly referred to as whales, while total liquidations hit nearly $1 billion in 24 hours.

Crypto Today: Bitcoin, Ethereum, and Ripple defend their last line of defenses

The broader cryptocurrency market remains under immense downward pressure as investors' interest shifts toward lucrative AI and memory stocks. Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are holding above their June 6 lows, with bulls hoping short-term resilience will ward off sellers.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.