Gold Price Forecast: XAU/USD to lurch higher a close above $1809
Gold price hit the highest levels so far this week at $1810 in early American trading after wavering around $1800 almost throughout the first half of Thursday. In the view of FXStreet’s Dhwani Mehta, XAU/USD is set to maintain range play around $1800 ahead of US PCE inflation.
Gold to waver within a pennant formation ahead of the key US data
“Gold is consolidating in a narrow range around $1800, contemplating the next move heading into the critical US PCE Price Index. The reading may not have much impact on gold unless there is a big deviation from the market consensus.”
“The yield curve flattening and the dollar dynamics will continue to influence gold, with investors awaiting the German and Eurozone GDP report for fresh trading impetus. The Eurozone inflation data will also be closely followed.”
“For a decisive break to the upside, XAU/USD needs a daily closing above the falling trendline resistance at $1809. If that happens, then a pennant breakout will get confirmed, opening doors towards the previous week’s high of $1814. The next relevant resistance is envisioned at the September month highs of $1834.”
“Strong support is seen at the 200-Daily Moving Average (DMA) at $1792, below which the $1788 will test the bullish commitments. A sustained move below the latter could validate a downside breakout from the pennant, with immediate cushion awaiting at the horizontal 50-DMA at $1781.”
See – Gold Price Forecast: Nascent XAU/USD bull to knock on the $1980 door – DBS Bank
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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.
