Gold Price Forecast: XAU/USD eyes acceptance above $1,760 to unleash additional recovery

FXStreet Insights Team FXStreet

Gold is staging a recovery rally above the $1,750 level this Tuesday. As FXStreet’s Dhwani Mehta notes, XAU/USD recovery needs acceptance above $1,760.

Downside to remain cushioned so long as the $1,740 mark is defended

“Gold price has recaptured the 23.6% Fibo level and the rising trendline support-turned-resistance, now at $1,747 and $1,749 respectively. The next upside barrier is seen at the $1,760 round figure. Acceptance above the latter is critical to unleashing the additional recovery toward $1,770.”

“On the flip side, the downside will likely remain cushioned so long as the $1,740 mark is defended. The bullish 21-Daily Moving Average (DMA) at $1,728 will be next in play. The $1,722 strong support will be the level to beat for Gold bears. That level is the confluence of the 38.2% Fibo level and the November 23 low.”

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.

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold moves closer to $5,150 amid sustained safe-haven flows

Gold climbs back above $5,100 during the Asian session on Wednesday, moving away from an over one-week low, touched the previous day. Sustained safe-haven flow, amid escalating geopolitical tensions in the Middle East, acts as a tailwind for the bullion. However, a bullish US Dollar and reduced bets for more aggressive easing by the US Fed might keep a lid on the non-yielding yellow metal ahead of the US ADP report and ISM Services PMI later today.