The price of gold soared on Monday to reach a new all-time high, stabilizing around $2,344.00 per troy ounce. Currently, a confluence of factors is driving the value of the precious metal.
Geopolitical tensions in the Middle East are a major factor positioning gold as a preferred “safe haven” investment. Additionally, central banks around the world are increasing their gold reserves, while global exchange-traded funds (ETFs) tracking the price of the metal continue to show strong interest.
Recent US labor market data for March exceeded expectations, indicating a strong finish to the first quarter for the US economy. These developments could affect the Federal Reserve's interest rate decisions, as lower rates lower the opportunity cost of holding gold, further supporting its price rise.
Since the beginning of the year, the value of gold has appreciated more than 12%, showing an impressive performance for what is traditionally considered a conservative asset.
technical analysis
The H4 chart for XAU/USD indicates that a wave of growth reached 2330.00, followed by the formation of a consolidation range around this level. This range has now widened to 2353.85. A technical decline is anticipated to 2330.00 (test from above), with further growth potential to 2380.33 as a local target. The MACD indicator, with its signal line well above zero and pointing upward, supports this growth scenario.
On the H1 chart, XAU/USD established support at 2269.00, completing a growth structure to 2330.53. A consolidation range has formed around this level, now extended to 2353.85. A corrective move to 2327.50 is expected (test from above), which could lead to a new wave of growth towards 2386.36. This forecast is confirmed by the stochastic oscillator, whose signal line is preparing to fall to 50 before rising back to 80.
By RoboForex Analysis Department
Disclaimer
Any forecast contained herein is based on the author's personal opinion. This analysis cannot be considered trading advice. RoboForex assumes no responsibility for trading results based on the trading recommendations and reviews contained herein.
