Gold Price Forecast: XAU/USD may surpass $2,000 on steadfast Russian demand for Ukraine surrender

Gold prices rebounded as geopolitical jitters activated risk-off impulse again.

Ukraine is in no mood to surrender against Russia, peace talks ended with no progress.

Higher inflation print is unable to barricade a rally in gold prices.

Negotiations in Turkey drove the situation back to square after the Kremlin escalated its demand to a ‘surrender’ from Ukraine against a halt on Russian military activity in Kyiv. A statement came from Ukraines Foreign Minister Dmytro Kuleba post the peace talks that “Russia is not in a position at this point to establish a cease-fire. They seek surrender from Ukraine. This is not what they're going to get,”

Meanwhile, the Ukrainian parliament says Russian forces attacked a Kharkiv institute that contains an experimental nuclear reactor. This has refreshed the fears of a nuclear attack by Russia.

On the dollar front, the US dollar index (DXY) is following the footprints of the precious metal after investors underpinned the risk-aversion theme on renewed geopolitical fears. The DXY is setting above 98.50 on geopolitical jitters and skyscraper US inflation print. The US Consumer Price Index (CPI), which was in line with the estimate of 7.9% but well above the prior record of 7.5%, has failed to pose a serious carnage in the gold prices. While the 10-year US Treasury yields have tapped 2% on rising expectations of a 50-basis point (bps) interest rate hike by the Federal Reserve.

Going forward, the headlines from the Russia-Ukraine war will continue to keep investors on their toes. Apart from that, investors will also focus on the Michigan Consumer Sentiment Index, which is due n Friday.

Gold Technical Analysis

On an hourly scale, XAU/USD has reversed to the upside after sensing support from February 24 high at 1,954.28. The 200-period Exponential Moving Average near $1,973.00 will act as major support for the precious metal. The Relative Strength Index (RSI) (14) has shifted its range from 20.00-40.00 to 40.00-60.00, which indicates a consolidation ahead. The trendline placed from March 8 high at $2,060.54 will act as a major barricade going forward.