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Gold Price Forecast | XAUUSD Eyes New All-Time High

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.

Gold price chart
XAUUSD Price Chart