Gold Price Forecast: XAUUSD extends consolidation above $1,900.00

Valeria Bednarik FXStreet

XAUUSD Current Price: $1,925.54

A deepening crisis in Eastern Europe fuels fears of skyrocketing inflation.
US government bond yields keep rallying as global indexes dip into the red.
XAUUSD is technically neutral, bulls may lose conviction on a break below $1,890.00.

Spot gold trades around $1,925.54 a troy ounce, still unable to attract investors as per trading in quite a limited intraday range. XAUUSD has been flat for over a week, with daily candles showing little to no bodies, as the risk-averse environment boosts demand for both safe-haven assets.

The greenback is generally stronger on Wednesday amid inflation-related concerns and mounting tensions between Western nations and Russia. The US and the EU are announcing new sanctions on Moscow’s commodities, despite the European dependence on gas and oil from the Eastern nation. The crisis, which exacerbates bottlenecks, is putting more pressure on already high inflation. In turn, central bankers from around the globe are tightening their monetary policies.

At the same time, government bond yields soar, while the yield-curve hints at recession. The yield on the 10-year US Treasury peaked at 2.66%, its highest since early 2019. Stocks, on the other hand, are on the backfoot, with US indexes reaching fresh weekly lows.

XAUUSD Technical Outlook

From a technical point of view, the bright metal has limited bullish potential, offering a neutral stance in its daily chart. A mildly bearish 20 SMA provides dynamic resistance, with the price consolidating just below it. The longer moving averages maintain their bullish slopes well below the current level, while technical indicators are still stuck around their midlines.

The near-term picture also reflects the absence of directional strength. Gold Price is below its moving averages, all of them confined to a tight range. Technical indicators, in the meantime, turned lower after briefly surpassing their midlines and are still confined to neutral levels. The bright metal can turn bearish on a break below 1,890.05, March monthly low, while bulls will likely be more comfortable if XAUUSD overcomes 1,949.80.

Support levels: 1,915.40 1,903.40 1,890.05

Resistance levels: 1,938.50 1,949.80 1,961.00

View Live Chart for the XAU/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.