Gold Price Forecast: XAU/USD to simmer a break above the $1,900 level
16.11.2021, 07:03

Gold Price Forecast: XAU/USD to simmer a break above the $1,900 level

Gold continues to trade above $1,860. The yellow metal seems to be attracting investors as a hedge against inflation but FXStreet’s Haresh Menghani warrants caution before placing aggressive bets on XAU/USD. 

Inflation fears helped to limit losses 

“The markets are pricing in the possibility for an eventual Fed rate hike move by July 2022. Moreover, the Fed funds futures indicate a high likelihood of another raise by November amid rising inflationary pressure.”

“The recent strong move-up stalled just ahead of a resistance marked by a downward sloping trend-line which extends from September 2020 swing highs and should now act as a key pivotal point for short-term traders. It will be prudent to wait for a convincing breakthrough of the trend-line before placing fresh bullish bets. XAU/USD might then accelerate the momentum and aim to reclaim the $1,900 level before eventually darting to June swing highs, around the $1,916-17 region.”

“Any meaningful pullback below the $1,850 level would now be seen as a buying opportunity. This, in turn, should help limit the downside near the $1,834-32 strong horizontal resistance breakpoint. Failure to defend the mentioned support levels might trigger aggressive long-unwinding trade and turn gold prices vulnerable to slide back towards the $1,800 mark.”

See – Gold Price Forecast: XAU/USD to soar back to the $2,075 record high on a break above $1,917 – Credit Suisse

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