Gold Price Forecast: XAU/USD needs to break the $1,942 barrier for a fresh uptrend

Gold price is consolidating the latest uptick to near nine-month highs. XAU/USD eyes $1,942 and global PMIs for further upside, FXStreet’s Dhwani Mehta reports.

Eurozone, United States PMI data in focus

“The focus is now shifting back to preliminary S&P Global Manufacturing and Services Purchasing Manager’s Index from the Eurozone and the US. Should the PMI reports across the euro area and from the US hint at increasing odds of a global recession, investors could scurry into the safe-haven USD, triggering a sharp retracement in XAU/USD from higher levels.”

“Gold bulls continue to yearn for acceptance above the upper boundary of a rising wedge formation, now aligned at $1,942. A fresh upswing toward the $1.950 psychological level cannot be ruled out on a daily candlestick closing above the latter.”

“The lower boundary of the wedge, now at $1,923, holds the key for Gold optimists. A sustained downside break could fuel a fresh downswing toward January 18 low at $1,897. But the previous day’s low at $1,911 and the $1,900 round figure could offer some brief reprieve to Gold buyers.”

See – EU PMI Preview: Forecast from three major banks, rising from the ashes