Gold surged above the key $1,830 resistance on Wednesday. XAU/USD seems to have gone into a consolidation phase around $1,840 early Thursday. In the view of FXStreet’s Dhwani Mehta, the upside remains intact.
Pullbacks could be a good buying opportunity
“The metal closed Wednesday above the rising trendline support at $1,839, where it now wavers. If the corrective decline picks up pace, then XAU/USD could drop further to test the previous critical resistance level around $1,831. Failure to defend the latter could put the bullish 21-Daily Moving Average (DMA) support of $1,815 at risk.”
“The 14-Relative Strength Index (RSI) has turned slightly lower, but still holds comfortably above the midline, suggesting that every dip in the price could be a good buying opportunity.”
“Bulls need to retest the two-month highs of $1,844 before it readies to take on the November 22 high of $1,849. Daily closing above that level could initiate a fresh uptrend in gold, with the $1,900 mark back in sight.”
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