Gold Price Forecast: XAU/USD pullback to $1910, opportunity to buy?

Gold prices dropped more than $50 from the daily high.
XAU/USD now up modestly after a sharp correction.
US dollar remains strong, US yields limit upside in gold.

Matías Salord FXStreet

Gold prices experience a sharp correction from the peak of $1974 to the $1920 area. It is now approaching $1940. Volatility remains at extreme levels in metals.

Equity prices are holding onto sharp losses across the globe amid the escalation of the Ukraine conflict. Russian troops invaded Ukraine on Thursday and triggered a rally in commodity prices, including gold.

During the last hours, US yields moved toward daily highs supporting the correction in gold prices.

Above the $1965 area, gold lost momentum, and after some stabilization near $1960, XAU/USD corrected quickly to as low as $1912. A break lower could trigger a deeper pullback. The following support stands at $1890.

On the upside, the immediate resistance is located at $1940; and a break higher could easily send XAU/UD to $1950. If the rally continues, a consolidation above $1965 should keep the road clear for $2000.

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Technical levels

XAU/USD

Overview
Today last price	1934.64
Today Daily Change	25.36
Today Daily Change %	1.33
Today daily open	1909.28

Trends
Daily SMA20	1844.17
Daily SMA50	1826.03
Daily SMA100	1811.33
Daily SMA200	1808.89

Levels
Previous Daily High	1910.55
Previous Daily Low	1889.65
Previous Weekly High	1902.5
Previous Weekly Low	1844.65
Previous Monthly High	1853.91
Previous Monthly Low	1780.32
Daily Fibonacci 38.2%	1902.57
Daily Fibonacci 61.8%	1897.63
Daily Pivot Point S1	1895.77
Daily Pivot Point S2	1882.26
Daily Pivot Point S3	1874.87
Daily Pivot Point R1	1916.67
Daily Pivot Point R2	1924.06
Daily Pivot Point R3	1937.57

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.

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