Gold Price Forecast: XAU/USD Heading for $1,980? Here’s What You Need To Know

The gold price is nearing its highest since April 2022, with early Thursday rounds reaching $1,952-50.

Arslan Butt•Thursday, February 2, 2023•1 min read

The GOLD price is nearing its highest since April 2022, with early Thursday rounds reaching $1,952-50. As a result, after rising the most in a fortnight, the XAU/USD bulls appear to be taking a hiatus as markets prepare for just a few more central banks and the US unemployment figures.

Having said that, the GOLD price had risen sharply the day before after the US Federal Reserve (Fed) perished the US Dollar with its dovish hike of 0.25%, which had been widely anticipated and priced in. The main focus, however, was on the Fed statement indicating easing inflation pressures and Chairman Jerome Powell’s hints of rate cuts in late 2023 if inflation falls faster. Downbeat US data and hopes for more Chinese stimulus, as well as upbeat equities and lower US Treasury bond yields, aided the XAU/USD bulls.

Following that, monetary policy meetings of the European Central Bank (ECB) and the Bank of England (BoE) could have an indirect impact on the GOLD price via the US dollar and market sentiment. However, Friday’s US employment data for January will be critical for providing a clear guide.

Gold Technical Outlook

The GOLD price has managed to break past the significant $1,950 resistance level. This marks previous monthly and weekly highs and Bollinger’s lower band on the 15-minute chart. Even though GOLD prices have recently dropped below a major support level, it is possible for the metal’s value to further decline around $1,940 due to a convergence of Fibonacci retracement levels at 38.2% and 23.6% over one day and one week.
The major resistance for GOLD buyers to overcome is Pivot Point’s one-month R1 at $1,978 if they want to defend prices above $1,950.

GOLD traders should be aware of the one-week R2, which could restrict the XAU/USD bulls from going beyond $1,968. Recent highs near $1,966 since late March 2022 should also be considered when trading GOLD .

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.