Gold Price Forecast: XAU/USD to enjoy a fresh uptrend above $1,950 towards $1,975

Gold remains one of the most sensitive assets to changes in risk mood. Apart from the encouraging fundamentals favoring XAU/USD, the metal’s technical setup also points to more upside, FXStreet’s Dhwani Mehta reports.

See – Gold Price Forecast: XAU/USD to surge towards the $2,075 record high on a weekly close above $1,917/23 – Credit Suisse

Symmetrical triangle breakout points to more gains

“The Ukraine-Russia war re-escalation will likely keep investors away from higher-yielding assets, boding well for the traditional safe-haven gold. The yellow metal could attract further bids on its appeal as an inflation hedge as well.” 

“The Nonfarm Payrolls report from the US, with only 400K jobs likely to have added in America last month, remains of relevance. If the US NFP figures disappoint markets, then it will weigh on the Fed’s aggressive tightening expectations, offering additional impetus to gold buyers.”

“XAU/USD has confirmed an upside breakout from a symmetrical triangle formation. With the bullish breakout, gold is positioned to retest the 13-month highs of $1,975 if it finds acceptance above the $1,950 psychological barrier.”

“On the downside, the immediate cushion is seen at the triangle resistance turned support at $1,935, below which a sharp sell-off could be triggered towards the powerful cap of $1,928. A firm break below the latter could lead to the pattern failure, fuelling a fresh downswing towards the ascending 50-SMA at $1,916.”

See – NFP Preview: Forecasts from 10 major banks, potential for upside surprise