Gold Price Analysis: XAU/USD on track to retest the multi-month highs above $1900

FXStreet Insights Team FXStreet

Gold price rebounds towards four-month highs above $1900. According to FXStreet’s Dhwani Mehta, XAU/USD is set to retest multi-month highs – bullish potential appears limited, though.

See – Gold Price Analysis: XAU/USD has steam to surge above the $2072 2020 high – Commerzbank

All eyes on key US macro news for fresh trading impulse in gold

“Bulls look recapture $1900, courtesy of the recovery in the risk sentiment that weighs on the safe-haven dollar. Renewed US-China trade optimism has lifted the market mood. Both sides officially confirmed that the US Trade Representative Katherine Tai and China’s Vice-Premier Liu He had candid and constructive trade talks.”

“Gold remains supported amid the continued surge in covid cases in Asia and fresh lockdown in the Australian state of Victoria.”

“Markets now shift their focus towards a fresh batch of US data due for release later on Thursday, with the Durable Good and Core PCE closely eyed. In the meantime, the narrative on the inflation risks and tapering bets will continue to impact gold price.”

“A break above Wednesday’s high at $1913 would expose the January high of $1918. However, a four-hourly closing below the critical 21-SMA support at $1891 could trigger a drop towards the ascending 50-SMA at $1879.”

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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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