Gold Price Forecast: XAUUSD to extend its rebound towards $1,880
|Gold Price rebounds from near $1,850. As FXStreet’s Dhwanie Mehta notes, XAU/USD could run into offers near $1,880 on road to recovery.
Falling trendline breakout could offer legs to XAU/USD rebound
“It remains to be seen if the recovery in Gold Price has legs, as the dollar could regain its safe-haven status if risk-aversion returns on the disappointing German ZEW survey. A sharp dip in the ZEW gauge could likely hint at an incoming recession in the old continent.”
“A slew of speeches from the Fed policymakers and US President Joe Biden will be closely followed for fresh USD valuations, eventually impacting Gold Price. US Treasury Secretary is also due to testify on the FSR later this Tuesday.”
“Gold has yielded an upside break from the falling trendline resistance at $1,861 on a four-hourly candlestick closing basis. This suggests that the renewed upside could have legs, with the next bullish target seen at around $1,872. A firm break above the latter will call for a test of the downward-pointing 21-Simple Moving Average (SMA) at $1,876. The 50-SMA at $1,880 will be the level to beat for gold bulls should the recovery momentum continue.”
“If sellers return, then the immediate downside target is seen at the previous day’s low of $1,852, below which the psychological $1,850 level. A fresh downswing will be initiated on a sustained move below the latter, opening floors towards the critical $1,835 demand area.”
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