XAU/USD to enjoy further gains on a break above $2,065 – SocGen

Gold is forming one more base near the upper part of range. Economists at Société Générale analyze XAU/USD’s technical outlook.

First support at $1,973

Gold attempted a breakout above its multiyear consolidation recently however it has re-integrated within the range after hitting $2,135 in December. Interestingly, it has managed to register highest monthly and yearly closes which is a signal for prevalence in the uptrend. Post this re-integration, Gold has stabilized above the 200-DMA and formed a small base. 

Recent pivot low at $1,973 is crucial support. Defence of this would be essential for averting deeper down move.  

If Gold establishes above the upper part of recent small base at $2,065, the up move is likely to extend. Next potential objectives could be located at $2,135 and projections of $2,230/$2,260.