Gold Price Forecast: XAU/USD to bounce higher as Ukraine crisis fuels growth concerns

Gold defends critical support line as Russia-Ukraine war flags growth risks. What next? FXStreet’s Dhwani Mehta highlights the key levels to watch out.

Gold bulls have managed to defend the rising trendline

“Markets have started to grow more concerned about the damaging impact of the Russia-Ukraine war on the global economy, which is still reeling from the post-pandemic effects. Investors’ wariness could help keep a floor under gold price.”

“XAU/USD has been forming higher lows, invariably defending the month-long rising trendline support at $1,895. If the bearish pressures intensify and sellers yield a daily closing below the latter, then a fresh downswing will come into force, opening floors towards Thursday’s low of $1,878.”

“Gold bulls could stage a rebound from the $1,895 critical support, putting the $1,920 supply zone back on the sellers’ radars. Further up, buyers could flex their muscles towards the $1,950 psychological level.”