Gold Price Analysis: Acceptance above 200-DMA at $1846 is critical for XAU/USD
|Gold (XAU/USD) settled higher around $1840 on Tuesday, as the US dollar remained on the back foot amid prospects of additional stimulus. The yellow metal has recaptured the 200-daily moving average (DMA) at $1846 on Biden’s inauguration day and daily closing above this critical hurdle is needed to negate the near-term downside bias, FXStreet’s Dhwani Mehta reports.
Key quotes
“On Wednesday, Joe Biden will take the Presidential office and his inaugural speech will be closely eyed for fresh hints on the fiscal stimulus and the next direction in gold. In the meantime, the yellow metal will continue to cheer the calls for more fiscal spending under the Biden administration and growing covid cases in the US. However, the risk-on rally in global stocks could likely cap the upside in the metal.”
“Daily closing above the critical hurdle of the 200-DMA at $1846 is needed to negate the near-term downside bias. Acceptance above the 200-DMA barrier could expose a powerful 50-DMA hurdle at $1860. Further up, the 21-DMA at $1876 will be on the bulls’ radar.”
“A failure to resist above the 200-DMA could revoke the recovery momentum, calling for a retest of the multi-week lows of $1803. A break below which the December low at $1775 could be put to test.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.