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Gold Price Forecast: XAU/USD hits fresh record highs near $1950, what’s next?

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Having settled last week just above the $1900 mark, Gold (XAU/USD) kicked-off the Fed week with a bang, hitting a fresh life-time high at $1944.76. Stops got likely triggered on a break above the previous record high of $1921.14, which called for a quick $25 rally. The traditional safe-haven extends its one-week-long rally, mainly underpinned by the US-China escalation over the consular closures and coronavirus resurgence in the US. The continued rise in the virus spread across the US weighs on the economic recovery prospects keep the US dollar under pressure. Meanwhile, concerns over the impending US stimulus package also dent the sentiment around the greenback.

From a broader perspective, gold continues to benefit from the aggressive monetary easing adopted by global central banks to tackle the virus impact. The US Treasury yields tumble amid an unprecedented level of money-printing, making the non-yielding gold more attractive.

Looking ahead, the bright metal is expected to take cues from the sentiment on the global stocks and US dollar price-action ahead of fresh virus stats and Durable Good Orders release due out from the US. Also, the US stimulus progress will be closely followed ahead of the US Federal Reserve (Fed) monetary policy decision due later on Wednesday.

Short-term technical outlook

Gold: Daily chart

Gold Price Forecast: XAU/USD hits fresh record highs near $1950, what’s next?

As observed in the daily chart, the price quickly pulled back after reaching all-time highs, thanks to the oversold Relative Strength Index (RSI) conditions. The RSI inches higher at 86 levels, calling for a further retracement.

The price could test the previous record high at $1921.14 on its move lower. The next downside target is seen at $1906.68, Friday’s high.

The daily low and the round number of $1900 will be the level to beat for the bears.

Alternatively, the bullish momentum will now regain momentum only on a break above the $1950 psychological level if the buyers surpass the latest record high.

Gold bulls have the $2000 mark on their radar, which will emerge as a big milestone in the history of gold trading.

Gold: Additional levels to consider

XAU/USD

OVERVIEW
Today last price 1930.18
Today Daily Change 29.03
Today Daily Change % 1.53
Today daily open 1901.16
 
TRENDS
Daily SMA20 1810.85
Daily SMA50 1762.86
Daily SMA100 1708.41
Daily SMA200 1617.96
 
LEVELS
Previous Daily High 1906.68
Previous Daily Low 1881.52
Previous Weekly High 1906.68
Previous Weekly Low 1805.86
Previous Monthly High 1785.91
Previous Monthly Low 1670.76
Daily Fibonacci 38.2% 1897.07
Daily Fibonacci 61.8% 1891.13
Daily Pivot Point S1 1886.23
Daily Pivot Point S2 1871.29
Daily Pivot Point S3 1861.07
Daily Pivot Point R1 1911.39
Daily Pivot Point R2 1921.61
Daily Pivot Point R3

1936.55

 

https://www.fxstreet.com/analy...

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