XAU/USD Eyeballing Higher Prices
Goldman Sachs Forecast Higher Prices for Gold
The latest research out of Goldman Sachs forecasts that the price of gold will climb by 6.0% to $2,175 a troy ounce in the next 12 months. Among other factors, the research evidenced demand through central bank purchases and global geopolitical tensions. However, the authors also suggested that price action is likely to be rangebound in the near term as markets continue to digest uncertainty surrounding Fed monetary policy.
Technical Charts Support Further Outperformance
There’s no denying that the yellow metal is exhibiting an uptrend, and has been since pencilling in a bottom around the $1,614 area in late 2022. We also witnessed an all-time high form at $2,147 in late 2023 after printing a heavy-handed upward spike through weekly resistance at $2,075. Since then, the precious metal has been gradually grinding lower, but has left weekly support unchallenged at $1,968. Ultimately, though, we are in a correction phase which is known to attract dip buying.
Knowing we have a clear uptrend in the longer term and are void of any immediate resistance on the weekly scale until $2,066, daily resistance coming in at $2,038 is potentially vulnerable to the upside this week. This follows the meaningful punch higher from the whipsaw seen through the $2,000 level into support between $1,971 and $1,986—made up of an AB=CD bullish pattern (100% projection ratio), horizontal support as well as a number of Fibonacci ratios.
Once (or indeed if) a breakout above $2,038 materialises this week, this will see breakout buying interest, perhaps taking aim at the weekly resistance zone between $2,075 and $2,066. Some traders will simply press buy on a close above $2,038; others will opt to wait for more confirmation before committing. This could be in the form of a simple $2,038 retest as support, or even drilling down to the lower timeframes to assess price action for a bullish trigger (trendline breach or AB=CD approach, for example).
The latest research out of Goldman Sachs forecasts that the price of gold will climb by 6.0% to $2,175 a troy ounce in the next 12 months. Among other factors, the research evidenced demand through central bank purchases and global geopolitical tensions. However, the authors also suggested that price action is likely to be rangebound in the near term as markets continue to digest uncertainty surrounding Fed monetary policy.
Technical Charts Support Further Outperformance
There’s no denying that the yellow metal is exhibiting an uptrend, and has been since pencilling in a bottom around the $1,614 area in late 2022. We also witnessed an all-time high form at $2,147 in late 2023 after printing a heavy-handed upward spike through weekly resistance at $2,075. Since then, the precious metal has been gradually grinding lower, but has left weekly support unchallenged at $1,968. Ultimately, though, we are in a correction phase which is known to attract dip buying.
Knowing we have a clear uptrend in the longer term and are void of any immediate resistance on the weekly scale until $2,066, daily resistance coming in at $2,038 is potentially vulnerable to the upside this week. This follows the meaningful punch higher from the whipsaw seen through the $2,000 level into support between $1,971 and $1,986—made up of an AB=CD bullish pattern (100% projection ratio), horizontal support as well as a number of Fibonacci ratios.
Once (or indeed if) a breakout above $2,038 materialises this week, this will see breakout buying interest, perhaps taking aim at the weekly resistance zone between $2,075 and $2,066. Some traders will simply press buy on a close above $2,038; others will opt to wait for more confirmation before committing. This could be in the form of a simple $2,038 retest as support, or even drilling down to the lower timeframes to assess price action for a bullish trigger (trendline breach or AB=CD approach, for example).
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