On Thursday, gold price added to Wednesday’s gains and hit four-day highs at $1789 before reversing slightly. Will XAU/USD find acceptance above channel hurdle at $1791? In the view of FXStreet’s Dhwani Mehta, the upside bias still remains in place in the near-term.
“China Evergrande's fears combined with the ongoing surge in the Treasury yields will likely limit the gold advance, as the sentiment will lead the way amid a lack of significant US economic release. Also, hawkish signals from the world’s major central banks could also keep a lid on the non-interest-bearing gold.”
“Immediate upside in gold price is seen capped at the rising trendline resistance at $1791. A sustained break above the latter will yield an upside breakout from the channel, opening doors towards the previous week’s high of $1801.”
“The bull cross, represented by the 21-Simple Moving Average (SMA) having cut the 50-SMA from above, adds credence to some additional gains.”
“Selling resurgence could see gold price falling back towards the confluence of the 21 and 50-SMAs at $1775. The next relevant downside target is aligned at the rising trendline support at $1771.”
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