Gold Price Analysis: XAU/USD eyes 200-DMA at $1,850

FXStreet Insights Team FXStreet

On a weekly basis, XAU/USD rose more than 3% and registered its largest percentage gain of 2021. Gold could target 200-day SMA at $1,850, according to FXStreet’s Eren Sengezer.

See – Gold Price Analysis: XAU/USD set to tackle $1850 behind shocking NFP – OCBC

The next target on the upside aligns at $1,850

“On Wednesday, the Consumer Price Index (CPI) data will be watched closely by market participants. Investors expect the Core CPI, which strips volatile food and energy prices, to rise to 2.3% on a yearly basis in April. A reading above 2.5% could lift the USD and weigh on XAU/USD but a softer-than-expected print could trigger another selloff.”

“On Thursday, the weekly Initial Jobless Claims data will be featured in the US economic docket ahead of Friday’s Retail Sales figures.”

“On the downside, the initial support is located at $1,820 (Fibonacci 50% retracement of the January-March downtrend) ahead of $1,800 (psychological level, 100-day SMA). As long as XAU/USD doesn’t make a daily close below the latter, buyers are likely to remain in control. Finally, $1,785 (Fibonacci 38.2% retracement) aligns as the next support if the outlook turns bearish.”

“On the upside, the first obstacle lines up at $1,843 (May 7 high). Above that level, the 200-day SMA and the Fibonacci 61.8% retracement from a significant resistance at $1,850. In case gold manages to clear that hurdle, it could target $1,860 (static level).”

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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