Gold To Target Next Resistance

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Gold To Target Next Resistance

Gold (XAU/USD) To Target $2,060, According to ANZ

The comments from the Federal Reserve president and other Fed officials have sent the Gold higher. As a result, the precious metal has already reclaimed the $2K resistance zone and is now en route towards the $2,060 resistance level.

The Gold prices have recovered after moving lower and touching the $1980 support level. Although the bears tried really hard to cross that level, it looks like the fundamental shift has given confidence to the Gold bulls once again.

For now, the Gold (XAU/USD) is still above the 100 and the 200 SMA (D1), which suggests that the buying interest is still present.

Gold May Advance To $2100 Resistance

However, the bulls will need to cross the $2060 resistance as it will signal a fundamental shift in the Gold's outlook. A successful break & retest of the $2060 will be a sign that the Gold is now back under the bulls' control.

Furthermore, a break of the above-mentioned resistance will open the doors to the $2100 level, which is also an important resistance zone. After that, we have the $2150, $2200, and the $2300 levels.

On the downside, a break of the $2K will send the precious metal toward the $1980, $1950, and $1900 levels. All of these are important support levels and could be easily breached by the bulls if the selling pressure intensifies.

The bottom line is that the comments from the Fed have led the market to believe that a policy pivot is just a few months away. As a result, any rate cuts will make the US Dollar less attractive in comparison to non-yielding assets like Gold and Silver.

However, it would still be too soon to make any assumptions, as March 2024 is still a few months away. In the months leading up to the next meeting, the Gold market will remain sensitive to any talks about rate cuts, rate hikes, or maintaining the current interest rate policy.

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