Gold Price Forecast: XAU/USD to reach $1800 on a break above channel hurdle at $1791

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.

XAU/USD looks to retest rising channel hurdle

“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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