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.

AUD/USD extends decline to fresh monthly lows below 0.7100

AUD/USD trades south of 0.7100 early in the Asian session on Thursday, as the US Dollar soared following the Federal Reserve's monetary policy announcement. The Fed delivered a 25 bps rate hike as expected, while policymakers expressed concerns about inflation leading to bets of additional hikes before year-end.

USD/JPY flirts with 156.00 after Fed's hawkish hike

USD/JPY trades at fresh weekly highs around 156.00 early on Thursday, as the US Dollar soared following the Federal Reserve's monetary policy announcement. The US central bank hiked the benchmark rate by 25 bps as expected, while Chair Kevin Warsh delivered quite hawkish comments in the press conference that followed the decision.

Gold dips towards $4,250 in the Fed's aftermath

Gold erased intraday gains and turned negative following the Federal Reserve's decision to hike rates by 25 bps as expected. The XAU/USD pair briefly surpassed the $4,360 level, now accelerating its slide towards the $4,250 price zone. Hawkish words from Chair Kevin Warsh fueled bets for additional hikes before year-end.

Fed raises 2026 interest rate forecast to 4.1%, lifts PCE inflation projections

The Federal Reserve's (Fed) latest dot plot projections, released by the Federal Open Market Committee (FOMC) on Wednesday, show policymakers now expect interest rates to stand at 4.1% by the end of 2026, up from 3.8% in June.

Fed recap: One hike down, more to come? The Fed’s new rate path says yes

The Federal Reserve (Fed) raised its Fed Fund Target Range (FFTR) range by 25 basis points to 3.75%-4.00% in a unanimous decision, saying the move would support a timelier return to its 2% inflation goal.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.