Gold Price Forecast: XAU/USD Heads Toward $1880 After Strong Recovery
11 Mar 2023 07:00, GMTWhat's on this page
Gold Weekly Technical Forecast: Bullish Above $1,840.
- Gold prices head toward the 50-day MA (moving average) after rebounding off technical support.
- Strong recovery results in the formation of a hammer candle. Is a bullish reversal in play?
- XAU/USD aims for $1,880 but bullish momentum fades after a brief retest of $1,871.9.
Gold Prices Climb Higher After Rebounding Off Technical Support
Gold prices experienced their second consecutive week of gains, driving futures toward $1,880.
After a brief retest of the 100-week MA (moving average) around $1,1813, a swift retaliation from bulls drove prices beyond $1,840. With XAU/USD gaining traction, the prior resistance level now holds as support for the short-term move.
On the weekly chart below, the strong rebound resulted in the formation of a hammer candle, suggestive of a potential reversal. While buyers continue to push higher, both psychological and technical levels could provide some big hurdles for bulls.
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Gold Price (XAU/USD) Weekly Chart
Chart prepared by Tammy Da Costa using TradingView
As the release of Friday’s NFP (non-farm payrolls) report pushed prices higher, gold continued to rise before peaking at $1,871.9.
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For the upside to persist, prices would need to break the 50-day MA before attempting to reach $1,880.
Gold (XAU/USD) Daily Chart
Chart prepared by Tammy Da Costa using TradingView
However, if prices fall below the 100-week MA, a rise in bearish momentum could pave the way for a move toward the next big psychological level of $1,800.
--- Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.