Gold (XAU) Daily Forecast: Hits $2,354 Peak; Is More Buying on the Horizon?

The Gold price surged, reaching a new peak at $2,354, despite easing Middle East tensions and Fed rate cut speculations. The leap was spurred by reports of increased Gold purchases by global central banks, with the People’s Bank of China notably extending its buying streak.

Central Bank Influence on Gold Prices

In March, the People’s Bank of China (PBOC) increased its gold reserves for the 17th consecutive month, reaching 72.74 million fine troy ounces.

This action is part of a broader trend where global central banks’ gold demand surged to 1,037.4 metric tons in 2023, nearly matching the record high of 1,081.9 metric tons in 2022, according to the World Gold Council (WGC).

The significant central bank purchases have been a major driver in boosting gold prices to new highs, underscoring the asset’s renewed status as a vital reserve currency amid geopolitical and economic uncertainties.

Economic Indicators & Geopolitical Tensions

The forthcoming U.S. Consumer Price Index (CPI) data, along with the unexpectedly strong job addition of 303,000 in March, play critical roles in shaping the Federal Reserve’s rate strategy. Additionally, easing tensions in the Middle East, notably between Israel and Hamas, have the potential to affect gold prices.

With the FedWatch Tool indicating a reduced likelihood of a June Fed rate cut from 62% to around 48%, these economic indicators, combined with geopolitical shifts, present a multifaceted landscape for gold investors.

Gold’s Path to $3,000

David Rosenberg, a renowned economist, forecasts that gold prices might soar to $3,000 per ounce, propelled by potential rate cuts by central banks and escalating geopolitical unrest.

Rosenberg’s detailed analysis indicates that gold is on a steady climb, with its trajectory toward $3,000 appearing more likely than a regression to lower levels. He attributes this bullish outlook to the negative correlation between gold prices and interest rates, alongside global geopolitical risks. Let’s jump to gold’s technical outlook.

Gold Prices Forecast

During the Asian session, Gold (XAU/USD) is subtly up at $2,333.08, with pivot point at $2,353.24 setting the stage. Resistance zones at $2,373.96, $2,394.67, and $2,417.38 marking potential upturn targets.

On the downside, support levels at $2,321.37, $2,302.65, and $2,277.15 could attract buyers, especially around the $2,300 mark, known for its historical buying activity.

Technical indicators like the 50-day EMA at $2,261.47 and the 200-day EMA at $2,169.41 underscore a generally bullish trend, but the recent test near the $2,353 resistance hints at a potential correction.

A definitive move above this resistance could reinforce the bullish sentiment, while slipping below $2,325 might signal a bearish shift in the market dynamics.