Gold Price Forecast: XAU/USD rises above $1860 after US intelligence report Russia may invade Ukraine next week
Geopolitical developments saw the yellow metal rocket to $1,860.
XAU/USD could break a nine-month-old trendline at $1,850-60 that has been in decline.
Gold (XAU/USD), which is up 2.36% during the week, approaches the weekend on a positive note. XAU/USD trades at $1,850 as of the time this article was written. Geopolitical developments relating to the Ukraine-Russia conflicts have prompted a $20 jump in XAU/USD trading at $1,850 since 18:30 GMT.
A PBS NewsHour reporter reported that the US believes Russian President Vladimir Putin has made a decision to invade Ukraine. The plan was already disclosed to the Russian military by two Biden administration officials. Two Biden administration officials stated that they anticipate the invasion starting next week. The reporter added, “that US defense officers anticipate a “horrific and bloody campaign” that will begin with two days’ bombardment and electronic warfare followed by an invasion with the potential goal of regime change.” According to reports, the North Atlantic Council received the latest intel today.
This aside, the financial markets mood is bleak. US equities trades in the red while the greenback, which is underpinned by US Treasury yields, rises to 95.85 at 0.28%.
Friday’s US economic docket showed little in the North American session. The University of Michigan Consumer Sentiment Index February was 61.7. This is lower than the 67.5 figure and trails the January 67.2 figure. Consumers expect inflation to be at 3.1% and 5.0% for the next 5 years.
In an interview with Bloomberg on Thursday, James Bullard (St. Louis Fed President) stated that he supports 1% rate increases to Federal Funds Rates (FFRs) by July 1. He said that he doesn’t want to “prejudice” the March meeting by referring to a 50-bps increase.
Technical Outlook: XAU/USD Price Prediction
Although the XAU/USD is neutral biased but the yellow-metal surged towards a nine-month-old trendline of downslope, at around $1850-60, which, if it breaks, would expose the November 16th 2021 high at $1877 and the June 1st 2021 daily highs at $1916.61.
