Gold Price Forecast: XAU/USD needs to close above 21-DMA at $1,935 to enjoy further gains

Gold price defended $1,915 but recapturing the 21-Daily Moving Average (DMA) at $1,935 barrier is critical to see further gains, FXStteet’s Dhwani Mehta reports.

Will XAU/USD close the week above critical 21-DMA at $1,935?

“The Fed rate hike expectations and the developments surrounding the Ukraine crisis will continue to remain the main driving forces behind gold’s price action. Also, a data-scarce US economic calendar will likely keep all eyes glued to the market’s perception of risk sentiment.”

“Should the bright metal yield a daily/weekly closing above the 21-DMA barrier at  $1,935, then a fresh uptrend towards the March 24 peak at $1,966 cannot be ruled out. Further up, bulls will aim for the strong resistance around $1,990-$2,000.”

“On the downside, the recent range lows at $1,915 will be the immediate cushion, below which the ascending 50-DMA at $1,909 could be put to test. The next stop for bears is seen at the $1,900 threshold, a breach of the latter will expose the March 29 lows of $1,890.”