Gold (XAU/USD) staged an impressive bounce from two-month lows on Friday, although ended the week deep in the red above the $1800 mark. XAU/USD bulls insist on US stimulus optimism but the upside appears limited, FXStreet’s Dhwani Mehta reports.
“The bulls remain hopeful amid the continued broader market optimism on stimulus hopes. Meanwhile, fresh concerns over the covid vaccines’ efficacy against the South African strain could also offer some support to the precious metal.”
“An increase in physical demand for gold ahead of China’s Lunar New Year holiday season and a broadly subdued US dollar could help put a floor under the prices. However, the recovery could remain in check amid rallying Treasury yields and upbeat sentiment on Wall Street.”
“A sustained break below the 21-hourly moving average (HMA) at $1810 is needed to negate the recovery momentum.
“With the 21-HMA having crossed the 50-HMA from below, the buyers keep their eyes on the bearish 100-HMA at $1823. A move above the 100-HMA would expose the 200-HMA hurdle at $1836.”
“The downward-sloping 50-HMA at $1806 could come to the bull’s rescue if the 21-HMA support is caved in. The next relevant support for the bright metal is seen at Friday’s low of $1792.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.