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Gold Price Forecast: Bullish Bias Dominates Over $1,945

Gold Price Forecast: Bullish Bias Dominates Over $1,945

Posted Tuesday, April 12, 2022 by
Skerdian Meta • 1 min read

In a risk-off environment, the gold price is down 0.11 percent and trading in a narrow range just above and below $1,950 in Asia. Following a sluggish start on Wall Street, investors are focused on inflation and the impact of central bank policy tightening.

The S&P 500’s major groups declined, while the tech-heavy Nasdaq 100 lost more than 2%. Since March 2019, ten-year Treasury yields reached 2.75 percent for the first time. Money market traders are pricing in a strong inflation number for US data this week after the Fed signaled sharp rate hikes and balance-sheet reductions to battle price pressures last week. Furthermore, China’s largest coronavirus outbreak in two years has heightened economic concerns.

This week’s economic events will be crucial, with the US Consumer Price Index being the first major economic data to help reveal the global economy’s health. The US currency should benefit with robust March prices confirming the Fed’s hawkish perspective, and gold’s price could rise.

XAU/USD

Gold (XAU/USD) Technical Outlook

Since mid-March, the GOLD price has been range-trading, likely accumulating the 2022 surge and primed for a bullish continuation. From a 4-hour perspective, the bullish structure is taking shape, and a break over $1,970 could be on the cards in the coming sessions.

However, if the US currency remains strong, $1,930 could come under attack, and if it does, the near-term prospects for a move higher will be severely hampered in the absence of a risk-off shock in the markets, such as a quick escalation of the Ukraine crisis: Ukraine’s President Zelenskyy has stated that Russian forces may deploy chemical weapons. Good luck!

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