Economists at Société Générale analyze Gold (XAU/USD) technical outlook.
Risk of a deeper pullback on failure to hold $2,012
Gold has evolved within a large sideways consolidation since 2020. It attempted a breakout from this range last month however faced stiff resistance near $2,135. Recent breakout attempt too has petered out near $2,088.
A sideways consolidation is taking shape.
Defence of the 50-DMA near $2,012 would be crucial for continuation in up move. It would be interesting to see if Gold can establish beyond recent lower peak at $2,088 to confirm clear breakout from multi-year range.
Failure to hold above $2,012 could denote risk of a deeper pullback.
Source: https://www.fxstreet.com/news/gold-price-forecast-xau-usd-to-confirm-clear-breakout-from-multi-year-range-on-a-move-above-2-088-socgen-202401151213