Gold Price Forecast Hits $2180 Amid US Rate Cut Speculations & Geopolitical Tensions

The Gold price forecast (XAU/USD) remains buoyant, with the commodity trading around the $2,190 mark, underpinned by a confluence of factors

Written by: Arslan Butt • Monday, March 11, 2024 • 2 min read

• Last updated: Monday, March 11, 2024

The Gold price forecast (XAU/USD) remains buoyant, with the commodity trading around the $2,190 mark, underpinned by a confluence of factors. The upward trajectory is primarily fueled by a risk-off sentiment amidst geopolitical strains and forecasts predicting a global economic softening in 2024. This apprehensive market mood bolstered gold’s appeal as it recently surged to a new record high.

US Economic Indicators Elevate Gold Prices

The anticipation of interest rate cuts by the Federal Reserve in June, sparked by rising unemployment rates in the US, has exerted downward pressure on the US dollar, consequently elevating gold prices.

This sentiment was reinforced by data indicating the US unemployment rate reaching a two-year peak, amplifying rate cut prospects by the Federal Reserve. This backdrop of uncertainty and risk aversion is expected to sustain gold’s luster in the immediate future.

Geopolitical Dynamics and Economic Uncertainties Propel Gold

Geopolitical unrest and the looming threat of a 2024 global economic downturn have propelled investors towards the safe haven of gold, further inflating its value.

Events exacerbating these tensions include impediments faced by Palestinians in accessing al-Aqsa Mosque and calls for an urgent ceasefire in Gaza amid Ramadan, underscoring the region’s volatility and the global community’s quest for peace.

Looking ahead, the gold market’s direction is likely to be significantly influenced by upcoming US consumer inflation data, set for release on Tuesday.

This data is critical in shaping market expectations regarding the Federal Reserve’s interest rate decisions, thereby impacting gold prices. As investors navigate through these uncertain times, gold remains a preferred refuge, with its price trajectory closely tied to geopolitical developments, economic indicators, and policy decisions by central banks.

Gold (XAU/USD) Price Forecast: Technical Outlook

As of March 11, Gold (XAU/USD) trades at $2179, displaying resilience within a bullish framework. Key analysis on a 4-hour chart outlines a pivot point at $2196. Resistance levels are observed at $2227, $2252, and $2277, delineating potential hurdles for upward momentum.

Conversely, support is identified at $2156, followed by $2131 and $2111, marking critical junctures to watch for potential downturns. The Relative Strength Index (RSI) stands at 74, indicating near overbought conditions, while the 50-day Exponential Moving Average (EMA) at $2120 supports the commodity’s underlying bullish trend.

However, a Doji candle formation beneath the $2196 threshold suggests potential for a bearish correction towards $2155 or $2130 this week.

Thus, the gold market exhibits a bearish outlook below $2196, with a breakout above this level possibly signaling a shift towards a more bullish sentiment.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

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.