Technically, bullish momentum is continuing after breaking the range of $1,845-1,850 on Friday. Gold needs to trade high to continue this momentum, analysts at ANZ Bank report.

Cautious on false breakout

“Gold price broke the key resistance of $1,845 following rise in US unemployment number and collapse of Silicon Valley Bank on Friday. This suggests that bullish momentum is likely to continue, however, one should be cautious of a false breakout.” 

“To continue the bullish momentum, Gold needs to trade above $1850 level. The next resistance is at $1,960.”

“On the downside, if XAU/USD comes back below $1,845 range, then a consolidation looks possible until it breaks the key support of $1,810. A break of this could trigger a technical sell-off, dragging prices to a low of $1,750. We see this level setting the lower bound for this year’s price range.”