Heading into the final trading day of this week, gold has turned positive once again, looking to retake the $1800 mark, as the upside bias remains intact amid bullish technical setup, FXStreet’s Dhwani Mehta briefs.
See – Gold Price Analysis: XAU/USD to climb towards the $1857/83 area – Credit Suisse
News on Biden’s tax proposal, US PMIs and covid updates in focus
“The greenback has resumed its bearish momentum amid improving market mood, as investors appear to move past Biden’s tax hike reports. The US Treasury yields are stabilizing after the previous drop, although its impact on the yieldless gold is likely to be limited, as the technical setup remains in favor of the bulls.”
“Markets look forward to the Eurozone and US PMI reports from fresh hints on the post-pandemic global economic recovery. Meanwhile, the covid vaccines and infections updated will be closely eyed as well.”
“A daily closing above the $1800 threshold is needed to revive the double bottom bullish reversal. The 100-DMA at $1804 would be the next bullish target, above which the doors are likely to open up towards the February 24 high of $1814.”
“A drop below Thursday’s low of $1777 is likely to put this week’s low at $1764 at risk. Further down, the confluence of the 21 and 50-DMAs at $1747 is the level to beat for the XAU bears.”
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