Gold Price Forecast: Bulls looking to overcome the $1,800 barrier

Valeria Bednarik FXStreet

XAUUSD Current price: $1,787.75

Easing US government bond yields took the dollar down across the FX board.
Investors await US inflation figures to be out next Wednesday.
XAUUSD is technically bullish, but $1,800 acts as a psychological barrier.

Spot gold advanced on Monday, reaching an intraday high of $1,790.01 a troy ounce during the American afternoon, holding nearby. The greenback gave back the Nonfarm Payrolls report-inspired gains and eased on the back of retreating US government bond yields.

Market participants temporarily shrugged off concerns about a potentially tighter US monetary policy ahead of the release of inflation figures next Wednesday. Stock markets closed in the green in Europe, while Wall Street indexes follow the lead, holding in the green at the time being.

Gold price short-term technical outlook

From a technical perspective, XAUUSD is poised to extend its advance. The daily chart shows the price pulled back from a daily descendant trend line coming from $1,857.49, June 16 high. Technical indicators in the mentioned time frame resumed their advances within positive levels, although with limited directional strength. At the same time, the 20 SMA turned marginally higher below the current level, while the 100 and 200 SMAs converge around $1,842.80.

The bright metal is neutral-to-bullish according to the 4-hour chart. The pair is developing above a bullish 20 MSA, while the longer moving averages remain below it. Technical indicators hold within positive levels, the Momentum directionless around its midline and the RSI indicator advancing at around 62. XAUUSD could advance further on a break above $1,794.95, the one-month high posted last Thursday.

Support levels: 1,780.50 1,769.00 1,752.30

Resistance levels: 1,794.95 1,803.10 1,816.60

View Live Chart for XAUUSD

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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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