Gold Price Forecast: XAUUSD struggling to retain $2,000
- ECB announces hawkish measures, expresses concerns about the Eastern Europe conflict.
- Skyrocketing US inflation reached yet another multi-decade high in February.
- XAUUSD looking for direction at around $2,000 amid multiple first-tier events.
Gold Price fell at the beginning of the day to $1,970.03 a troy ounce, but slowly recovered towards the $2,000 level, hovering around it ahead of first-tier events, named the European Central Bank monetary policy announcement and February US inflation data. The bright metal recovered amid renewed concerns about the Eastern European situation, as talks between Ukraine and Russia broke down as the two sides were unable to agree on a ceasefire of the creation of humanitarian corridors.
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Meanwhile, the European Central Bank has announced its monetary policy decision. As widely anticipated, the central bank has left rates unchanged. However, policymakers noted that if “the medium-term inflation outlook changes and financing circumstances become incompatible with further progress toward our 2% target, we will alter our net asset purchase schedule in terms of magnitude and/or length.” A hawkish stance sent EUR higher, providing support to XAUUSD, which reached an intraday peak of $2,009.09 a troy ounce, although the metal quickly retreated amid ECB President Lagarde expressing concerns about the war effect on local growth and inflation
Additionally, the US published the February Consumer Price Index, which hit a multi-decade high of 7.9% YoY as expected. The core reading surged to 6.4%, also as anticipated by the market.
XAUUSD Technical Outlook
Gold Price keeps hovering around the 23.6% retracement of its January/March rally at around $2,002.00, looking to settle post-Lagarde speech. The bright metal lacks directional strength and is looking for a new one once first-tier events’ dust settles.
Beyond the daily high, XAUUSD could extend gains towards 2,0025, en route to 2,049. Strong support comes at 1,955, the 38.2% retracement of the aforementioned rally.
