On the final trading day of the week, gold bulls have regained poise. In the view of FXStreet’s Dhwani Mehta, XAU/USD eyes a firm break above $1795 amid growing inflation fears.
Rising channel hurdle remains a tough nut to crack for gold bulls
“Gold traders now look forward to the Markit Preliminary PMI reports from across the Euro area and the US for fresh signals on the economic recovery, which will likely have a significant impact on the risk tone and the dollar valuation. Fed Chair Jerome Powell’s speech will be also closely eyed as a relatively data-light week draws to an end.”
“The rising trendline resistance at $1795 will continue to offer stiff resistance for gold buyers. A sustained break above the latter will yield an upside breakout from the channel, opening doors towards the previous week’s high of $1801.
“Rejection once again at the channel resistance could see gold price falling back towards the upward-sloping 21-SMA at $1779, below which the 50-DMA at $1777 could come into play. At that level, the rising trendline support emerges.”
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