By RoboForex Analytical Department
Gold’s value skyrocketed to a new all-time high, settling around 2344.00 USD per troy ounce. A perfect storm of factors is currently fueling the precious metal’s ascent.
Geopolitical tensions in the Middle East serve as a significant catalyst, casting gold as the go-to “safe-haven” investment. Moreover, central banks globally are ramping up their gold reserves, while worldwide exchange-traded funds (ETFs) monitoring the metal’s price are exhibiting marked interest.
Recently released US job market data for March exceeded expectations, signaling a robust close to the first quarter for the US economy. These developments could potentially influence the Federal Reserve’s interest rate determinations, as reduced rates diminish the opportunity cost of holding gold, further bolstering its ascent.
Since the year’s inception, gold has appreciated over 12%, underscoring remarkable performance for a commodity traditionally perceived as conservative.
Technical Analysis of XAU/USD
Analysis of the H4 chart for XAU/USD reveals a growth surge hitting 2330.00, followed by the establishment of a consolidation range around this level, now expanded to 2353.85. An anticipated technical retracement to 2330.00 (testing from above), potentially leading to subsequent growth towards 2380.33 as a local target. The MACD indicator, with its signal line comfortably above zero and pointing upwards, reinforces this growth outlook.
On the H1 chart, XAU/USD solidified support at 2269.00, concluding a growth pattern to 2330.53. A consolidation range has emerged around this level, now extended to 2353.85. An expected corrective move to 2327.50 (testing from above) may pave the way for a fresh growth wave towards 2386.36. This projection is corroborated by the Stochastic oscillator, as its signal line readies to dip to 50 before ascending back to 80.
Disclaimer
Any forecasts outlined herein are based on the author’s distinct viewpoint. This analysis should not be construed as trading advice. RoboForex disclaims any liability for trading outcomes resulting from trading recommendations and assessments provided herein.
This article is authored by an unpaid external contributor. It does not reflect Benzinga’s editorial approach and has not undergone editing for content or accuracy.
