Gold Price Forecast: XAU/USD hits levels above $1850 for the first time in two months and retreats
- Metals and US stocks remain volatile amid concerns across markets.
- XAU/USD rises $10 in a few minutes and then erases gains.
- Positive outlook for gold while above $1830.
A quick drop in US yields boosted XAU/USD that jumped from $1840 to $1853, reaching the highest level since November 19. It then pulled back all the way to $1840 and now is approaching the $1850 area again.
Prices remain volatile in metals, stocks and bonds. The spike in gold took place amid a quick decline in US yields and after US stocks trimmed losses. The Dow Jones is falling 1.08% and the Nasdaq 2.37%, both indices off lows.
Market participants await the outcome of the FOMC meeting. On Wednesday, the central bank is expected to give clear signals of a March rate hike.
Short-term outlook
Volatility across financial markets is also affecting gold that can jump and then reverse sharply in a few minutes. The outlook for gold remains biased to the upside while above $1830. A side below would clear the way for to a test of the 20-day simple moving average at $1820.
A consolidation above $1850 would be a positive development pointing to more gain with a target at the next resistance zone at $1865/70.