Gold capitalized on safe-haven flows throughout this week. A daily close above $1,910 could open the door for additional gains toward $1,925, FXStreet’s Eren Sengezer reports.

XAU/USD’s losses to remain limited unless a resolution of the Russia-Ukraine conflict

“Geopolitics is likely to remain the primary market driver next week. A de-escalation of tensions could trigger a risk rally and cause gold to come under heavy selling pressure. On the other hand, a prolonged threat of a Russian invasion could provide another boost to XAU/USD.”

“The Personal Consumption Expenditures (PCE) Price Index will be featured in the US economic docket on Friday. On a yearly basis, the Core PCE Price Index is expected to edge lower to 4.8% in January. A stronger-than-forecast print could help the greenback find demand and weigh on XAU/USD but the market reaction is likely to remain short-lived as long as geopolitical uncertainties persist.”

“Gold needs to rise above $1,900 (static level, psychological level) and start using that level as support in order to extend its rally. On the upside, $1,910 (static level) aligns as the next bullish target ahead of $1,925 (static level).”

“Support are located at $1,870 (former resistance, static level), $1,850 (static level) and $1,838 (20-day SMA).”

See – Gold Price Forecast: Rate hikes no concern for XAU/USD – ANZ

This article was originally published by the original article here.


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