Today, the XAU/USD gold chart shows a historic milestone as the price of the precious metal surpasses USD 2,400 per ounce.
Driven by concerns over a potential surge in inflation fueled by escalating commodity prices and ongoing geopolitical tensions worldwide, gold continues to serve as a trusted safe-haven asset. Analysts at Goldman Sachs underscore this sentiment, asserting that gold is firmly entrenched in an enduring bull market, prompting an upward revision of their price forecast to USD 2,700.
With a remarkable 15% surge since the start of 2024, culminating in a record-breaking high of USD 2,425, the question arises: Can the bullish momentum sustain itself?
Despite the fundamental landscape remaining fraught with uncertainty, a technical analysis of gold prices reveals several significant challenges:
- The ascending channel (depicted in blue), where XAU/USD currently hovers near the upper boundary, encountering resistance as indicated by the arrow.
- The psychological barrier of $2,400, breached briefly before retracing.
- Overbought conditions signalled by the RSI indicator.
- Fibonacci proportions suggesting a potential target around $2,335, already surpassed by the recent price surge from point C.
Previously forecasted to reach $2,380, the market’s current dynamics, compounded by profit-taking motives among some traders amidst the price uptrend, may pave the way for a corrective phase. Such a correction could see prices retreat towards the lower intermediate channel lines (illustrated in black), reflecting the ebb and flow inherent in market movements.
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