Gold Price News and Forecast: XAU/USD is on the verge of testing the psychological $1,800 level
|Gold: Acceptance above $1775 is critical for the XAU bulls
Gold kicked-off a fresh week on the defensive amid the upbeat market mood, although held onto the $1770 level. The stimulus expectations led rally on the global stocks could likely weigh on the safe-haven. Key technical levels to watch.
The Technical Confluences Indicator shows that the yellow metal faces a stiff resistance at $1776, which is the convergence of the Fibonacci 61.8% one-day and Bollinger Band 15-minutes Middle and SMA100 1H. The next upside hurdle awaits at $1777, where the previous day high and Fibonacci 38.2% one week coincide. Acceptance above the latter will trigger a fresh rally towards the $1786 target, the previous month high.
Asia FX and Gold: Markets torn between robust cyclical data and surging US virus case counts
The market has been brought higher by continued investor interest amid falling real rates and coronavirus concerns. The pullback from recent highs this week has likely been a positive for risk markets’ double function of favorable vaccine trial results and robust economic data, signaling a continuation of the recovery. But it doesn’t seem that anything matters for gold as it remains bid on a stronger dollar and higher equities. Gold investors could be looking through this economic sweet spot in the recovery anticipating a downswing in the data, which would then be accompanied by even more stimulus.
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