Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
Gold Could Find It Tough to Crack $2000

Gold Could Find It Tough to Crack $2000

Gold, XAU/USD - Technical Outlook:

  • Gold’s rally is showing signs of fatigue.
  • $2000 is quite strong psychological and technical resistance.
  • What are the key levels to watch?
How to Trade Gold
How to Trade Gold
Recommended by Manish Jaradi
How to Trade Gold
Get My Guide

GOLD TECHNICAL OUTLOOK - NEUTRAL

Gold could find it tough to break above the key psychological $2000 as risk appetite appears to be stabilizing.

First Citizens BancShares takeover of a large part of Silicon Valley Bank, UBS’ move to acquire Credit Suisse, and the willingness of regulators to provide liquidity/backstop facilities have provided comfort to investors that the worst banking shock since the Great Financial Crisis would be contained.

XAU/USD Daily Chart

image1.png

Chart Created Using TradingView

XAU/USD has risen over 10% since the end of February as worries regarding the global financial sector have overshadowed still-strong US data (US Economic Surprise is at a fresh 10-month high), boosting the safe-haven appeal of the yellow metal. Moreover, expectations of a sooner-than-expected pause in the US Fed rate hiking cycle have weighed on US yields, supporting the non-interest-bearing asset.

XAU/USD Weekly Chart

image2.png

Chart Created Using TradingView

The key focus is now on US Core PCE Price Index for February due on Friday, which is expected flat at 4.7% on-year. A stronger-than-expected print could dent expectations regarding a Fed rate cut. Last week, the Fed indicated it was on the verge of pausing further rate hikes, prompting markets to price in a rate cut as early as Q3-2023.

On technical charts, a negative divergence on the daily and weekly charts indicates XAU/USD’s rally is showing signs of fatigue as it tests crucial psychological and technical resistance (including the April 2022 high) at 2000. To be sure, a retreat isn’t imminent.

XAU/USD 240-minute Chart

image3.png

Chart Created Using TradingView

Any break below immediate support at the mid-March low of 1934 would confirm that the upward pressure had faded in the interim. Such a break would trigger a minor double top (the late-March highs), opening the way toward 1875.

Gold’s sharp rebound came about from near-strong support at the end-February low of 1804, coinciding with the 89-day moving average. See “Gold Technical Outlook: A Turnaround on the Cards?”, published March 1.

Trade Smarter - Sign up for the DailyFX Newsletter

Receive timely and compelling market commentary from the DailyFX team

Subscribe to Newsletter

--- Written by Manish Jaradi, Strategist for DailyFX.com

--- Contact and follow Jaradi on Twitter: @JaradiManish

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES