Gold is extending the rebound while battling $1800. Room to rise towards $1825? XAU/USD awaits key event risks, FXStreet’s Dhwani Mehta briefs.
Gold’s 4H chart shows a falling wedge breakout
“Investors will look forward to any hints on the taper timing from Powell, although the Delta covid variant concerns have recently watered down the hawkish bets.”
“Gold traders will await the US PCE inflation data ahead of Powell’s address. But Powell’s take on the monetary policy will set the tone for the market in the coming days, heavily impacting the USD valuations and gold price.”
“Gold price has confirmed a falling wedge breakout after closing above the falling trendline resistance at $1795 on a four-hour candlestick basis. The upside breakout has re-opened doors towards $1825, which is the pattern target. However, the weekly highs at $1810 could challenge the bullish attempts on a sustained move above $1800.”
“21-Simple Moving Average (SMA) at $1796 is likely to offer an immediate cushion to the bulls. The confluence of the 200-SMA and wedge resistance-turned-support at $1794 will be the next relevant target for gold sellers. Further south, the 50-SMA at $1791 will be back in play, with a follow-through downside bias likely to fuel a fresh sell-off towards the 100-SMA around $1777.”
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