Gold Price Analysis: XAU/USD steadies above $1,780 after surging to fresh multi-year highs
The XAU/USD pair gained traction toward the end of the London session and surged to its highest level since October 2012 at $1,786. With the risk sentiment improving modestly in the American trading hours, the pair has gone into a consolidation phase and was last seen trading at $17,82, gaining 0.55% on the day.
In the absence of significant macroeconomic drivers, month-end flows in the early American session provided a boost to the precious metal. Meanwhile, the greenback came under renewed bearish pressure and allowed the XAU/USD pair's bullish momentum to remain intact.
Gold: Can the bulls build support above 1744?
If last week was all about the breakout, it would appear that this week is all about consolidating the move. Since the original March rally tailed off in mid-April, it has effectively taken more than two months for the bulls to make their next move. However, with several false upside dawns in that time, perhaps it is understandable that the market is taking this breakout with caution. We are also cautious with our positive outlook on gold. Holding above $1744 will now be a key gauge as to the outlook of the market. This breakout above $1764 (the old May high) has been consolidated in recent sessions, but the signs are encouraging for the bulls.
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