Gold Price Forecast: XAU/USD eyes fresh upside amid inflation risks

Gold closed the sixth trading day in the positive territory on Thursday but seems to have gone into a consolidation phase above $1,850 on Friday. As FXStreet’s Dhwani Mehta notes, XAU/USD awaits acceptance above $1,870 while the focus is on US consumer data.

US Consumer Sentiment data could provide fresh dollar trades

“The narrative of mounting inflationary risks and their negative impact on the global economic growth will continue to bode well for the bullion. Covid resurgence in China and in parts of the Euro area boosts gold’s safe-haven appeal, as well.” 

“The US Consumer Sentiment data will be closely eyed for any impact on the dollar trades, which may eventually influence gold price.”

“XAU/USD remains on track for further upside on a sustained break above the June 16 highs of $1,869. The next significant resistance is environed at the June 14 tops of $1,878, followed by the $1800 psychological level.”

“On the downside, the $1,850 demand area will get tested initially, below which Thursday’s low of $1,843 will be on the sellers’ radars. The previous critical resistance now support at $1,834 will hold the key for gold bulls.”

See – Gold Price Forecast: XAU/USD to form an uptrend by March 2022 – TDS