Gold edged higher on Thursday, albeit continued with its struggle to find acceptance or build on the momentum beyond $1,800. Bulls may wait until $1,810 to place more aggressive bets, in the view of FXStreet's Haresh Menghani.
See – Gold Price Forecast: Time for XAU/USD to shine – DBS Bank
XAU/USD battles to conquer $1,800, not a good sign for bulls
“Market participants now look forward to the release of the US Producer Price Index for some impetus. This, along with the US bond yields, could influence the USD price dynamics. Apart from this, the broader market risk sentiment might also produce some trading opportunities around the XAU/USD on the last day of the week.”
“The commodity's inability to climb further beyond the $1,800 mark warrants some caution for bullish traders. This makes it prudent to wait for some follow-through strength back above the very important 200-day SMA, around the $1,810 region, before positioning for any further appreciating move. XAU/USD might then accelerate the momentum and aim to challenge a strong barrier near the $1,832-34 supply zone.”
“The $1,784-82 region now seems to have emerged as immediate support ahead of the $1,775-74 horizontal zone. A convincing break below will be seen as a fresh trigger for bearish traders and set the stage for a deeper retracement to the $1,750 level.”
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