Gold Price News and Forecast: XAU/USD struggle to keep the previous run-up
|Gold Price Analysis: XAU/USD battles 21-day SMA to keep one-week high around $1,950
Gold prices struggle to keep the previous run-up while declining to $1,945.80 during the early Thursday morning in Asia. The yellow metal rose to the highest since September 03 on Wednesday before taking a U-turn from $1,950.90. While market sentiment remains mostly positive, a lack of catalysts and the pre-ECB cautiousness could be considered as reasons for the bullion’s recent pullback.
XAU/USD: Short-term trend reversal at mid-term key support
The price of the precious metal did on Tuesday retrace back to the mid-term key support we already talked about on the 26th of August. The re-test of the key support was followed a strong bullish reaction and short-term trend reversal.
The short-term trend has clearly reversed with the price action printing a new series of higher highs and higher lows and a bullish impulsive and corrective sequence, indicating that bulls are in control short-term. If bulls can remain in control, a bullish continuation towards $1970 and $2000 is likely. Buyers looking to go long the precious metal can look for weak/corrective pullbacks to get long.
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