Gold Price Forecast: XAU/USD looks to reclaim $1914 amid risk-aversion theme
|- Gold price is eyeing $1914.34 as investors prefer precious metal amid safe-haven appeal.
- The tensions between Russia and Ukraine escalated after the latter declared a state of emergency.
- Investors are eyeing Thursday's US GDP and Initial Jobless Claims.
Gold price is set to reclaim Tuesday’s high at $1914.34 as the uncertainty in the market reaches ceilings amid the geopolitical tensions between Russia and Ukraine. The economy is bracing for high inflation in the coming trading sessions as escalating sanctions fall on Russia to punish it for violating international law may continue to push oil prices higher.
On Wednesday, Ukraine called its citizens back from Russia and declared a state of emergency. While, Moscow began evacuating its Kyiv embassy, in the latest ominous signs for Ukrainians who fear an all-out Russian military onslaught, as per Reuters.
The lack of positive developments over the Russia-Ukraine tussle has put the investors on their toes and investors are very harsh on risk-sensitive assets.
The galloping volatility in the market has improved the safe-haven appeal and investors are pouring funds into the precious metal.
Meanwhile, the US dollar index (DXY) surpasses 96.00 on expectations of improvement in US Gross Domestic Product (GDP) numbers and Initial Jobless Claims, which are due on Thursday. An aggressive tightening policy by the Federal Reserve (Fed) in March’s monetary policy meeting is losing momentum as the economy can go through tough times amid the expectation of the most destructive war since 1945.
Gold Technical Analysis
On a 15-minute scale, XAU/USD has retreated after kissing the trendline placed from Monday’s low of $1886.66. The precious metal is expected to extend gains towards Monday’s high at $1914.34. The Relative Strength Index (RSI) (14) is likely to strengthen bulls after overstepping 60.00.
Gold 15-min chart
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