Gold Price Analysis: XAU/USD to extend its rise on a daily close above $1,850
Gold managed to stage a rebound and rose to $1,840, closing in the positive territory for the second straight week, after coming under strong bearish pressure on Wednesday. Key resistance and support levels for gold remain intact, FXStreet’s Eren Senvgezer briefs.
US inflation expectations and T-bond yields continue to drive XAU/USD movements
“Investors will remain focused on developments surrounding inflation expectations. The inverse correlation between the gold price and the 10-year US Treasury bond yield is expected to remain intact.”
“Strong resistance seems to have formed at $1,850, where the 200-day SMA and the Fibonacci 61.8% retracement of the January-March downtrend meets. A daily close above that level could attract buyers and open the door for additional gains toward $1,860 (static level) and $1,875 (static level, January 21 high, January 29 high). “
“$1,820 (Fibonacci 50% retracement) could be seen as the initial support ahead of $1,800 (psychological level, 100-day SMA, 20-day SMA). With a convincing drop below the latter, additional losses toward $1,780 (Fibonacci 38.2% retracement) could be witnessed.”
“The Relative Strength Index (RSI) indicator stays between 60 and 70, suggesting that XAU/USD has more room on the upside before becoming technically overbought.”
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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.
