Gold Price Forecast: XAUUSD could touch $2,050 on a break above $1,930 – ANZ

Aggressive monetary tightening, rising yields and a stronger dollar are key drags for the gold prices. Meanwhile, sustained inflation and heightened geopolitical risks should protect the yellow metal somewhat. Technically, economists at ANZ Bank expect XAUUSD to confirm a bullish move on a break above $1,930.

Gold looks well supported at $1,850 in the short term

“Aggressive Fed rate hikes, faster quantitative tightening, the stronger US dollar and any possible easing of Russia’s invasion of Ukraine are the main possible headwinds for the gold prices. Higher inflation risks and lingering geopolitical tension are likely to offset some of these risks. The key development to watch is the Fed’s reaction to any upside surprise in inflation, which could impact real interest rate.”

“We see the short-term key support level being $1,850. Should it break below this, prices could easily retreat to $1,800.” 

“We expect a trading range of $1,850-1,930 in days ahead.”

“A convincing break of above the upper trend line of $1,930 would confirm a bullish move. Once this level breaks, prices could touch the previous highs of $2,000 and $2,050.”