Gold Price Analysis: XAU/USD set to test $1800 behind Fed's dovish decision

Gold advanced from the lows and trades around $1,780, eyeing a firm break above $1800. Meanwhile, US GDP is in focus on Thursday, FXStreet’s Dhwani Mehta reports.

See – Gold Price Analysis: XAU/USD to rise above $1800 on US T-bond yields moving below 1.55% – OCBC

Focus shifts to key US economic data amid stimulus updates

“Gold is building on Fed-induced turnaround this Thursday, gaining additional benefit from US President Joe Biden’s push for $a 1.8 trillion spending package. Expectations of ongoing policy support from the government and the central bank offer a much-needed boost to the bulls.” 

“Heading into a flurry of critical US economic data, including the advance Q1 GDP, gold has entered a phase of upside consolidation, as the US dollar attempts a bounce across the board. However, gold is likely to resume its uptrend as the greenback continues to feel the pull of gravity amid dovish Fed expectations.”

“A break above the multi-day highs of $1790 could expose powerful resistance near $1797-$1798 levels, which is the confluence of April 21 and 22 highs. The next critical hurdle awaits at $1800, where the 100-daily moving average (DMA) coincides. Only a daily closing above that level would revive the bullish momentum.”

“The $1863 Wednesday’s low is the next relevant downside target. Meanwhile, the upward-pointing 21-DMA at $1758 is the last line of defense for the XAU bulls.”