XAUUSD is ready to touch 2020!

Gold prices have continued their upward trajectory, reaching nearly $1,990 on Friday, a level not seen in five months. The XAU/USD pair has benefited from the growing interest in safe havens, with investors actively seeking to mitigate their exposure to risk. Furthermore, the decline in U.S. yields has provided additional support to the price of gold. The precious metal has embarked on a triumphant three-day trend and is expected to reach a five-month peak of around $1,987, with the main resistance level positioned at $2,000. Both the 20-day and 50-day Exponential Moving Averages (EMAs) have surpassed the 200-day EMA, indicating a strengthened bullish sentiment. The Relative Strength Index (RSI) has also crossed the 60.00 threshold, suggesting potential upside for gold.

These price fluctuations have been driven by escalating tensions in the Middle East and a speech by Federal Reserve Chair Jerome Powell endorsing a policy of stable interest rates. The demand for gold has increased as Israeli forces prepared to enter the Gaza Strip, raising concerns about potential regional conflicts in the Middle East. Powell and other Federal Reserve officials have provided neutral guidance on interest rates, acknowledging the influence of rising U.S. Treasury yields on spending and investment. In short, I expect a small retracement to the 1960/1970 area before identifying a long entry with a target of 2020, and then looking for a short with a target of 1950. Let me know what you think. Greetings from Nicola, the CEO of Forex48 Trading Academy.