Gold Price Forecast: Moving closer to record highs at $2,075/oz
- Easing tensions favor a better market mood, although gold rallies anyway.
- Wall Street is posting substantial gains ahead of the opening, trimming Monday’s losses.
- XAUUSD is technically bullish, near term buyers are aligned around $2,000.
XAUUSD outperforms this Tuesday, rallying to fresh multi-month highs despite a more stable market’s mood. Gold Price hit an intraday high of $2,020.96 a troy ounce at the beginning of the day, finally breaking through the psychological $2,000 threshold and holding well above it.
Demand for the American currency eased partially, as concerns about developments in Eastern Europe cooled down a bit. Asian shares edged lower, although their European counterparts trade in the green, leading a comeback among US indexes up ahead of the opening, limiting the dollar’s demand to the benefit of the bright metal. The third round of peace talks that took place on Monday ended without material solutions, but investors are now looking for another round of talks next Tuesday in Turkey.
Gold re-enters 2,000 zone; outlook bullish
Gold Price technical outlook
XAUUSD pulled back from the mentioned high but met buyers at $1,999.35, a sign that buyers are willing to defend the 2,000 mark. Gold Price is overbought in the near term, although there are no technical signs of bullish exhaustion, which maintains the risk skewed to the upside for the American session. Beyond the daily high, the next resistance level is 2,049.87, August 10, 2020, daily high, en route to the high set that month in 2,075.64 a troy ounce.
When measuring the January/March rally, from 1,780.15 to 2,020.96, the 38.2% retracement is located at 1,928.31, which means that a decline towards such a level could be considered corrective. For the short-term, once below the aforementioned 1,999.35, XAUUSD could decline to 1,964, the 23.6% retracement of the mentioned run.
