Gold Price Analysis: XAU/USD eyes additional upside towards $1880

FXStreet Insights Team FXStreet

Gold stands out with an upswing, trading above $1,850. As FXStreet’s Dhwani Mehta notes, XAU/USD’s bullish potential is intact despite the US dollar’s bounce.

US dollar dynamics and Fed speak in focus for near-term trading impetus

“Gold is benefiting from the risk-averse market conditions, thanks to the renewed worries about coronavirus restrictions in Asia. A major covid outbreak haunts Taiwan and Singapore while India and Japan struggle with rising cases and regional lockdowns.”

“Dovish Fed expectations and concerns over dwindling Chinese economic recovery also keep the bullish undertone intact in gold. Gold investors now look forward to the Fedspeak and dollar dynamics amid a quiet start to the week.”

“Gold prices have confirmed a rectangle breakout on the four-hour chart in early dealing, with additional upside seen towards $1880. However, with the Relative Strength Index (RSI) peeping into the overbought territory, the gold bulls could turn a bit cautious before resuming another leg higher.”

“The immediate downside is likely to be cushioned at the pattern resistance now support at $1844. The mildly bullish 21-simple moving average (SMA) at $1831 could be the next significant cap.”

Author

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.