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Gold Price Forecast: XAU/USD hits $1,900 for the first time in a month

  • The gold price rally continues and tests the $1,900 level.
  • The yellow metal rises 5% in three days of trading.
  • US yields hit their lowest level in months amid risk aversion.

The price of gold (XAU/USD) rises more than 2% on Monday, extending gains from last Friday boosted by a rally in US Treasuries as investors fly to the safe haven and cut expectations of interest rate hikes by the Federal Reserve.

He XAU/USD has reached $1,900 for the first time since February 3. Afterwards, it has fallen slightly back to $1,895. The recovery of gold has been spectacular, with a raise of more than $90 since Thursday. Above $1,900, the next resistance zone is around $1,920.

The main driver of the recovery of the yellow metal is the sharp decline in US yields. The 10-year US bond has fallen from more than 4.0% to 3.41%, approaching yearly lows. On the other hand, the 2-year bond exceeded 5.0% on Wednesday (highest since 2008) and a few moments ago it reached the lowest intraday level since October, at 4.0%.

The bankruptcy of Silicon Valley Bank triggered concerns about the banking sector, weighing on Fed rate hike expectations. Investors are watching the impact of the crisis, which is offsetting incoming economic data. On Tuesday the CPI Consumer Price Index for February is released in the US, which was supposed to be critical for monetary expectations. Following the SVB plunge, markets are pricing in a dovish Fed.

gold technical levels


Last price today 1899.46
daily change today 29.54
today’s daily variation 1.58
today’s daily opening 1869.92
daily SMA20 1835.48
daily SMA50 1871.07
daily SMA100 1810.46
daily SMA200 1775.06
previous daily high 1870.09
previous daily low 1827.77
Previous Weekly High 1870.09
previous weekly low 1809.46
Previous Monthly High 1959.8
Previous monthly minimum 1804.76
Fibonacci daily 38.2 1853.92
Fibonacci 61.8% daily 1843.94
Daily Pivot Point S1 1841.76
Daily Pivot Point S2 1813.61
Daily Pivot Point S3 1799.44
Daily Pivot Point R1 1884.08
Daily Pivot Point R2 1898.25
Daily Pivot Point R3 1926.4

Source: Fx Street

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