Gold Price Analysis: XAU/USD boosted amid weaker USD, eyes retest of $1850s
Spot gold (XAU/USD) prices have rallied into the low $1840s on Thursday amid further USD weakness, with the precious metal recovering from a bout of post-US equity cash open weakness that saw prices drop into the low $1820s at worst levels. As the spot FX market close approaches at 22:00GMT, gold trades with gains of roughly 0.6% or slightly over $10.
A combination of the usual themes (US fiscal stimulus hopes, vaccine optimism and expectations for a strong global recovery in 2021) have kept USD on the back foot on Thursday, pushing the Dollar Index to lows around 90.50.
Gold Price Analysis: XAU/USD erases gains despite dollar’s weakness
Gold pulled back from weekly highs and dropped to $1823/oz, reaching a fresh daily low. It then rebounded, and as of writing, it trades at $1830, around the same level it closed on Wednesday. The rally in XAU/USD from multi-month lows appears to be losing strength even as the US dollar tumbles across the board. The DXY dropped to 90.48, the lowest level in two years.
The area around $1845, slightly below the $1850 level that was a key support prior to the sell-off to $1765, capped the upside. The band $1845/50 is a key resistance that if broken, should clear the way to more gains.
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