Gold Price Analysis: XAUUSD to extend its rally towards $1,920/25 on break above $1,907

Gold has regained the $1,900 mark. As FXStreet’s Dhwani Mehta notes, XAU/USD needs to beat the $1,920-$1,925 hurdle to confirm Fed-led bullish reversal.

BoE hawkish stance to aid gold recovery

“Attention now turns towards the Bank of England (BoE) interest rate decision. Should the BoE surprise with a more hawkish stance, then the dollar correction would gather steam, aiding the recovery mode in Gold Price. The dollar bulls will jump back into the game if the BoE disappoints the hawks and triggers a fresh sell-off in GBP/USD. The renewed upside in Gold Price could come to a pause.”

“XAUUSD is on its way to test the immediate upside barrier at $1,907, the 38.2% Fibonacci Retracement (Fibo) level of the recent downtrend from April 18 highs of $1,998 to this week’s low of $1,850. If bulls take out this hurdle, then a fresh advance towards the $1,920-$1,925 confluence area cannot be ruled out.”

“If sellers lurk at the 38.2% Fibo barrier, then Gold Price could see a quick pullback towards the $1,900 level. The next support will be at the 23.6% Fibo level of $1,885, below which the 100-DMA, now at $1,881, will be put to test. Tuesday’s high at $1,878 could challenge the bullish commitments should the retracement pick up steam.”

See – BoE Preview: Forecasts from 11 major banks, another dovish hike on the cards