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Gold Price Analysis: XAU/USD eyes additional upside as technical setup screams buy

On Friday, gold bulls have regained poise Friday after a brief corrective pullback to $1760. In the view of FXstreet’s Dhwani Mehta, XAU/USD looks to $1800 amid bullish technical setup.

See – Gold Price Analysis: XAU/USD to race higher towards $2000 by year-end – DBS Bank

Geopolitical risks and vaccine woes support XAU/USD ahead of US data

“The geopolitical tensions between the US and Russia, growing covid vaccine concerns and mixed Chinese data underpin the sentiment around the yellow metal while the US dollar fades its recovery attempt. However, the XAU bulls could face an uphill battle amid the renewed strength in the US Treasury yields across the curve, as attention shifts back to the US macro news.” 

“The UOM Consumer Sentiment data is due on the cards later on Friday. In the meantime, the gold traders will take cues from the broader market sentiment, dollar price action and yield dynamics.”

“An hourly closing above the falling trendline resistance at $1764 will validate the bullish continuation pattern, calling for a fresh rally towards $1800. Ahead of that level, the February 26 high of $1776 could challenge the optimists.

“The upward-sloping 21-hourly moving average (HMA) at $1761 could act as strong support, below which the daily low could be probed. Further south, the psychological $1750 barrier could be the level to beat for the XAU bulls.”

 

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