Gold Price Analysis: XAU/USD hits fresh two-month highs near $1790 as US dollar tumbles

Gold is breaking higher towards $1800, as USD sell-off resumes.
The US Treasury yields remain depressed amid dovish Fed bets.
XAU/USD’s technical indicators point to more upside.

Dhwani Mehta FXStreet

Gold (XAU/USD) is extending its three-day upbeat momentum into Monday, as the bulls clinch fresh two-month highs near $1790, fast approaching the $1800 mark.

The acceleration of the selling pressure in the US dollar in the European morning fuelled another leg up in the yellow metal. The US dollar index tumbles to fresh seven-week lows of 91.17, down 0.40% on the day.

The greenback remains heavily offered across the board, thanks to the risk-on market mood, spurred by optimism over higher vaccination rates in Europe, the UK and the US. Successful vaccine rollouts suggest a faster global economic recovery, weighing down on the safe-haven dollar.

Further, the weakness in the US Treasury yields, in the wake of dovish Fed expectations, also collaborates with the bearish tone in the buck.

The precious metal also draws support from the reports that China has granted permission to its domestic and international banks to import large amounts of gold into the country. Additionally, a favorable technical setup also backs the renewed uptick in gold.

Looking ahead, the US dollar price action and broad market sentiment will lead the way for gold traders, especially, in absence of relevant economic news from the US.

Gold: Technical levels

XAU/USD

Overview
Today last price	1787.95
Today Daily Change	13.20
Today Daily Change %	0.74
Today daily open	1774.75

Trends
Daily SMA20	1735.09
Daily SMA50	1752.17
Daily SMA100	1804.89
Daily SMA200	1857.65

Levels
Previous Daily High	1783.85
Previous Daily Low	1759.82
Previous Weekly High	1783.85
Previous Weekly Low	1723.8
Previous Monthly High	1759.98
Previous Monthly Low	1676.87
Daily Fibonacci 38.2%	1774.67
Daily Fibonacci 61.8%	1769
Daily Pivot Point S1	1761.76
Daily Pivot Point S2	1748.78
Daily Pivot Point S3	1737.73
Daily Pivot Point R1	1785.79
Daily Pivot Point R2	1796.84
Daily Pivot Point R3	1809.82

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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