Gold Price Forecast: Preparing to retest record highs?
- Gold Price resumes its advance amid mounting tensions in Eastern Europe.
- Mixed US data had no impact on the bright metal as the focus remains on sentiment.
- XAUUSD is nearing a solid static resistance around $1,960 with a near-term bullish stance.
Gold Price surged to $1,948.56 a troy ounce on Wednesday amid a souring market’s mood that sent Wall Street into the red. XAUUSD accelerated its advance during London trading hours to hit a fresh weekly high of $1,957.84, approaching a robust static resistance area. It quickly retreated from the level ahead of US data releases, holding nearby afterwards, as the figures had no impact on the bright metal.
The dismal market mood that boost demand for XAUUSD is directly linked to the ongoing developments in Eastern Europe. US President Joe Biden has met with other European leaders to discuss the situation and, alongside NATO, are preparing for a risk of Moscow launching a nuclear attack. They have also discussed assisting Ukraine with anti-ship missiles.
Also read: XAUUSD price moves: A consequence of conflict or/and interest rate increases?
XAUUSD Technical Outlook
Gold Price neared a strong static resistance level, the 38.2% retracement of the 1,799.38/2,070.50 rally at around $1,960.00. The bright metal is up for a second consecutive day, currently crossing above a mildly bullish 20 DMA. Technical indicators in the daily chart fall short of confirming a bullish continuation, as the Momentum heads lower within neutral levels, while the RSI indicator is stable at around 55.
XAUUSD turned bullish in the near term, and according to the 4-hour chart, which shows that the price is challenging bears’ determination around the 100 SMA, while the 20 SMA picks up below the current level.
Once $1,960 is cleared, the next relevant resistance level is $1,970.03, March 10 daily low, followed by the $1,992.00 price zone. Support levels are at the daily low of $1,937.33, and the next Fibonacci support is at $1,925.20.
