Gold Price Forecast: Bulls eyeing the 1,830 price zone

Valeria Bednarik FXStreet

XAU/USD Current price: $1,807.01

Gold surges amid weaker US government bond yields, caution ahead of first-tier events.
The American dollar trades unevenly across the FX board in a slow start to a busy week.
XAU/USD is technically bullish and could extend its advance towards the 1,830 price zone.

Gold is up this Monday, trading near the multi-week high posted on Friday at $1,813.80 a troy ounce. The American currency is relatively stable across the FX board, clearly stronger against the EUR but trading unevenly against other major rivals. Stocks are on the winning side, somehow reflecting a strong appetite for riskier assets, yet gold advances on retreating US government bond yields. The benchmark for the 10-year Treasury note peaked for the day at 1.673%, currently hovering around 1.63% far from the critical 1.70% threshold that tends to boost demand for the greenback.

Demand for the safe-haven metal is also underpinned by investors turning cautious ahead of multiple first-tier events spread through the week. The European Central Bank, the Bank of Japan, and the Bank of Canada will have monetary policies this week. Furthermore, the US will release the preliminary estimate of its Q3 Gross Domestic Product, and core PCE inflation, the US Federal Reserve favourite inflation measure.

Gold price short-term technical outlook

XAU/USD is trading around$1,807.00 a troy ounce and has room to extend its advance. In the daily chart, gold is developing above all of its moving averages, while technical indicators maintain their bullish momentum well above their midlines. The 100 and 200 SMA stand in the lower band of the 1,790 price zone, reinforcing a strong static support level.

In the near term, and according to the 4-hour chart, the bright metal is also poised to gain additional ground. A bullish 20 SMA keeps advancing above the longer ones and below the current level, reflecting persistent buying interest. Technical indicators have lost their bullish strength, but consolidate near overbought readings, without signs of bullish exhaustion. A critical resistance level and a possible bullish target is located at 1,833.95, September monthly high.

Support levels: 1790.60 1,781.90 1,770.40

Resistance levels: 1,813.80 1,823.15 1,833.95

View Live Chart for the XAU/USD

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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