Gold Price Forecast: XAU/USD to grind higher towards $1,850

Gold is trading back around the $1,800 round-figure mark. XAU/USD could rise as high as $1,850, FXSTreet’s Haresh Menghani reports.

Renewed COVID-19 jitters provided a goodish lift

“In the absence of any major market-moving economic releases from the US, the focus will remain on developments surrounding the coronavirus saga. Apart from this, the US bond yields and the USD price dynamics will play a key role in influencing gold's intraday momentum on the last day of the week.”

“The support around the $1,783-82 zone would now act as a key pivotal point for short-term traders. A convincing break below will be seen as a fresh trigger for bearish traders and pave the way for additional losses. The XAU/USD could then accelerate the fall towards the $1,770-69 area en-route the monthly swing low, near the $1,759 region.”

“Momentum above the $1,800 mark is likely to confront resistance near the $1,807-08 region. Some follow-through buying could trigger a short-covering move and push gold prices beyond an intermediate hurdle near the $1,818 area, towards testing a static resistance near the $1,832-34 supply zone. A convincing breakthrough the latter will suggest that the corrective fall has run its course and lift the XAU/USD to the next relevant barrier near the $1,850 region.”