At the time of writing this article, the XAU/USD pair is trading near the 1957.00 mark, remaining in the bull market zone. A strong upward momentum prevails. In the current situation, long positions look preferable. A signal to enter them may be a breakdown of the local resistance level of 1965.00. However, the decline to short-term support levels of 1949.00, 1942.00 provides additional opportunities to increase long positions. Above the key support level of 1838.00, XAU/USD remains in the long-term bull market zone.
One of the main reasons for the rise in prices is the geopolitical tension in the world and the situation in Ukraine, where Russia is conducting a military special operation, and on the other hand, it is the accelerating inflation in the world.
Despite the Fed's plans to further tighten monetary policy, there are no strong grounds for lowering the price of gold. On the contrary, many economists expect its growth to resume, especially if it becomes obvious that the Fed is unable to cope with rising inflation. Investors seem to perceive investing in the precious metal as a hedging tool and store of value, rather than as a speculative position.
Support levels: 1949.00 1942.00 1918.00 1910.00 1901.00 1877.00 1850.00 1838.00 1832.00 1800.00 1785.00 1752.00
Resistance levels: 1965.00, 1975.00, 2000.00, 2010.00, 2070.00, 2075.00
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