Gold ended the week on a positive note and inched back closer to multi-month tops, around the $1,910 region during the Asian session on Monday. In the view of FXStreet’s Haresh Menghani, XAU/USD seems poised to prolong its recent positive momentum.
Additional gains could be in the books
“Given that markets in Britain and the United States are closed for a holiday, relatively thin liquidity might hold bulls from placing aggressive bets and cap the upside for the commodity. Investors might also prefer to stay on the sidelines and look forward to the release of the US monthly jobs report on Friday for a fresh directional impetus.
“A move beyond monthly swing highs, around the $1,912-13 region will reaffirm the positive outlook and push the commodity to an intermediate resistance near the $1,930 area. The momentum could further get extended towards the next major hurdle near the $1,960-65 supply zone.”
“The $1,900-$1,895 area might now protect the immediate downside ahead of Friday’s swing lows, around the $1,882 region. This is followed by support near the $1,870-68 horizontal support, which if broken decisively might prompt some long-unwinding trade. The metal might then accelerate the fall further towards the $1,852-50 support zone.”
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