Gold (XAU/USD) price is looking very bullish as it keeps adding to its yearly gains. Since the start of 2023, the price of Gold has risen by 8.7%. This has led many analysts to believe that a new all-time high could be just a matter of time. After a 5.16% drop in February, bullion rebounded from fresh yearly lows to yield 7.76% gains in March.
Gold price per ounce started this week with a positive price action and rose by 0.79% on Monday. On Tuesday, the price action remained sideways, and the precious metal showed minor losses during the London session.
XAU/USD Surges As The Dollar Weakens
The dollar strength index tracks the strength of the US dollar in terms of a basket of foreign currencies. Since the start of March, the DXY Index has been in a downtrend and has lost 3.6%. This weakness in the US Dollar has also been reflected in Gold price per ounce, which is inversely correlated to the DXY Index.
Another reason behind the ongoing XAU/USD rally is the failure of multiple banks in the US and the corresponding increase in the demand for safe-haven assets. This has led to a 9% price surge in Gold which is now trading just a few dollars below its yearly highs.
Gold Price To Make New ATH In 2023?
The XAU/USD chart shows consolidation around the $1980 level. This level has become a huge resistance as it also aligns with the May 2022 highs. This is the last major resistance before the psychological level of $2000. A reclaim of this level can make the Gold price | XAUUSD forecast very bullish.
There is also a good chance of rejection from the current price level. A breakdown below the $1934 level may trigger a retest of the upwards trendline which has been drawn on the chart. Considering the current macroeconomic situation, any pullbacks in the price of Gold could be good buying opportunities.
