Gold Price Forecast – Will Energy Shock and Inflation Push XAUUSD Higher?
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Key Points:
- Gold remains supported by energy-driven inflation and geopolitical disruption, with the current macro backdrop favoring further upside despite short-term corrections.
- Slowing economic growth and limited Federal Reserve flexibility due to rising inflation continue to strengthen gold’s role as a defensive asset.
- A bullish breakout could drive further gains, while holding key support keeps the overall upward trend intact.
Gold (XAU) price is fluctuating as the market responds to ongoing disruption in the Strait of Hormuz and skyrocketing energy related inflation. The price opened with a gap lower on Monday as the ceasefire deal between the US and Iran failed. I think this background preconditions further strength in gold, which is backed by both slowing economic growth and ongoing inflation pressure. This article presents the macro drivers, technical structure and key levels that will determine the next move in gold.