Gold Price Forecast: XAU/USD to confirm clear breakout from multi-year range on a move above $2,088 – SocGen

Economists at Société Générale analyze Gold (XAU/USD) technical outlook. 

Risk of a deeper pullback on failure to hold $2,012

Gold has evolved within a large sideways consolidation since 2020. It attempted a breakout from this range last month however faced stiff resistance near $2,135. Recent breakout attempt too has petered out near $2,088.

A sideways consolidation is taking shape.

Defence of the 50-DMA near $2,012 would be crucial for continuation in up move. It would be interesting to see if Gold can establish beyond recent lower peak at $2,088 to confirm clear breakout from multi-year range.

Failure to hold above $2,012 could denote risk of a deeper pullback.