The XAU/USD gold chart today indicates that the historical record price of the metal is above USD 2,400 per ounce. Geopolitical tensions, such as active military conflicts and the threat of new ones, have contributed to the surge in gold prices. Fears of inflation and economic instability due to rising commodity prices have also played a significant role in driving investors towards safe-haven assets like gold.
Gold is currently in an “unshakable bull market” according to Goldman Sachs analysts, who raised their gold price forecast from USD 2,300 to USD 2,700. However, from a technical analysis perspective, there are several important headwinds to consider. These include the ascending channel, psychological round levels like 2,400, overbought market conditions indicated by the RSI indicator, and Fibonacci proportions that suggest a potential target price level.
It is important to note that despite the bullish sentiment surrounding gold, there is a possibility of a market correction in the near future. Traders may be motivated to take profits after a period of rising prices, which could lead to a downward correction in the market. This correction could potentially bring the price of gold back to lower intermediate channel lines, as indicated in the technical analysis.
While the fundamental backdrop for gold remains tense due to geopolitical tensions and economic uncertainty, it is essential for investors to consider both analyst predictions and technical analysis in making informed decisions. The current price of gold has reached new highs, but there are potential headwinds and factors that could lead to a market correction in the near future. By staying informed and understanding the various factors at play, investors can navigate the volatile gold market more effectively.