Gold Price Analysis: XAU/USD to confront stubborn resistance around $1797
Gold extends gains towards $1800 as Treasury yields ease. XAU/USD is likely to face stiff resistance near $1795-$1800, FXStreet’s Dhwani Mehta reports.
See – Gold Price Analysis: US Treasury yields and USD to ease later in the year, allowing for XAU/USD gains – HSBC
Growing covid concerns weigh on stocks, yields
“The US rates could resume their decline should the risk-off mood worsen, benefiting gold further. The relentless rise in the covid cases threatens to derail the global economic recovery, which unnerves the investors. Amid a lack of relevant economic data, gold will continue to follow the yields for fresh directives.”
“Gold remains on track to test the rising wedge hurdle at $1797 en-route $1800.”
“The price has managed to hold above the 21-simple moving average (SMA) at $1775, with the bullish Relative Strength Index (RSI) pointing towards extra gains.”
“A four-hourly candlestick close below the 21-SMA at $1775 will recall the sellers.”
“The confluence of the wedge support and 50-SMA at $1757 could emerge as strong support.”
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.
