Gold Price Analysis: XAU/USD to underpin bullish bias on a break above $1,800
|Gold failed to gather enough bullish momentum to break above $1,800. This week, key data releases from the US could trigger a breakout while key technical levels remain intact following last week’s action, FXStreet’s Eren Sengezer briefs.
XAU/USD fails to clear $1,800 hurdle ahead of key US data
“Investors are likely to stay on the sidelines ahead of the highly-anticipated first-quarter GDP and inflation reading from the US on Thursday and Friday. The US Bureau of Economic Analysis’s first estimate is expected to show an expansion of 6.3% in the economic activity. A stronger-than-anticipated reading would provide a boost to the greenback and force XAU/USD to edge lower.”
“Market participants will pay close attention to the Core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred gauge of inflation, on Friday. Earlier in the month, the Consumer Price Index (CPI) data ease fears over price pressures becoming uncontrollable in the near term and caused US Treasury bond yields to push lower. A similar market assessment could fuel a rally in XAU/USD and open the door for a retest of $1,800. On the other hand, a big increase in the PCE Price Index might hurt the precious metal on the last trading day of the week.”
“The initial resistance is located at $1,785 (Fibonacci 38.2% retracement of the January-March downtrend) ahead of $1,800 (psychological level/100-day SMA). A daily close above the latter could attract buyers and lift gold toward $1,820 (Fibonacci 50% retracement).”
“Supports are located at $1,770 (Apr. 23 low), $1,755 (static level/former resistance) and $1,740 (20-day SMA/50-day SMA).”
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