Gold prices rose in the North American session by close to 1%.Geopolitics, mixed US inflation data, and China’s Covid-19 lockdowns affect oil prices, which lifted XAUUSD.Gold Price Forecast (XAUUSD): Remains upward, and a daily close above $1966, might exacerbate a move towards $2000.
Gold (XAUUSD) surges above March 24 high at $1966, and It aims to get back to the $2000 mark after US consumer inflation rose to levels last seen in 1981, amidst a mixed sentiment, courtesy of high global inflation, the Ukraine-Russia conflict, and China’s Covid-19 lockdowns. At the time of writing, XAUUSD is trading at $1967.93 a troy ounce.
Reflection of the market’s sentiment is European and US equities, fluctuating between gainers and losers. The US Department of Labor reported that the Consumer Price Index (CPI) for March rose by 8.5%, higher than 8.4%, while the so-called core CPI, which excludes volatile items like food and energy, expanded by 6.5%, lower than the 6.7%.
The greenback reacted negatively to the news, dropping below the 100.000 mark, while XAUUSD broke above the $1966 threshold as US bond yields fell.Of late, the US Dollar Index, a measurement of the buck vs. six currencies, reclaimed the 100.00 mark, edges up 0.26%, while the US 10-year Treasury yield is twelve basis points down from the 2.836% highs, towards 2.710%, a tailwind for the non-yielding metal prices, as high inflationary scenarios boosts appetite for the yellow metal.
Aside from this, the Ukraine-Russia conflict extends for the seventh straight week. Ukraine’s President Volodymyr Zelenskyy reported that Russia could make use of chemical weapons, as social media reports emerged that Russia made use of them in Mariupol. However, journalists have not confirmed it, and the US Pentagon Press Secretary Kirby said that the US is aware and will monitor the situation.
Gold Price Forecast (XAUUSD): Technical outlook.
XAUUSD’s bias is upwards, but since March 16, is trapped in the $1900-66 range. On Tuesday, mixed Us inflation data boosted Gold prospects, as XAUUSD reacted upwards and broke above the top of the range, reaching a daily high at $1978.53, though of late, it is testing the $1966 level as support.
Upwards, XAUUSD’s first resistance would be $1978.53. A breach of the latter would expose the R2 daily pivot at $1984 and then the R3 pivot point at $1998, short of the $2000 mark.
EUR/USD approaches the year low as the dollar remains strong.EUR/USD trades at fresh monthly lows and not far from the year bottom at 1.0805. Core US CPI rose at a slightly softer pace than expected in March, which put mild pressure on the greenback. Nevertheless, the American currency got to recover the ground lost as stocks lost momentum.
GBP/USD is about to pierce the 1.3000 threshold.GBP/USD has gained traction and climbed to the 1.3050 area with the immediate reaction to the US inflation figures, and following upbeat UK employment figures. Nevertheless, the pair trimmed early gains and is now poised to turn red sub-1.3000
XAUUSD en route to test $2,000?
Commodity prices soared after the release of higher-than-anticipated US inflation figures, resulting in Gold Price reaching $1,978.59 a troy ounce, its highest since mid-March.