Gold Price Forecast: XAU/USD to extend its race higher once hurdle at $2,135/$2,140 is overcome – SocGen

Gold (XAU/USD) topped $2,100 on Monday. Economists at Société Générale analyze the yellow metal’s outlook.

$2,075 is near-term support

Gold has established itself above the upper part of multi-year range ($2,075) in the form of a rectangle; this denotes the uptrend has resumed. It is fast approaching the peak achieved in December near $2,135/$2,140 which is also the trend line connecting highs of 2011 and 2020. This could be a tentative resistance but break from multi-year consolidation points towards possibility of larger upside. 

Upper limit of the rectangle at $2,075 is near-term support.

Once Gold overcomes the hurdle at $2,135/$2,140, the up move is likely to extend; next objectives could be located at projections of $2,250 an $2,360.

Target for the rectangle is located at $2,460.