Gold Price Analysis: XAU/USD eyes 200-DMA at $1,850
|On a weekly basis, XAU/USD rose more than 3% and registered its largest percentage gain of 2021. Gold could target 200-day SMA at $1,850, according to FXStreet’s Eren Sengezer.
See – Gold Price Analysis: XAU/USD set to tackle $1850 behind shocking NFP – OCBC
The next target on the upside aligns at $1,850
“On Wednesday, the Consumer Price Index (CPI) data will be watched closely by market participants. Investors expect the Core CPI, which strips volatile food and energy prices, to rise to 2.3% on a yearly basis in April. A reading above 2.5% could lift the USD and weigh on XAU/USD but a softer-than-expected print could trigger another selloff.”
“On Thursday, the weekly Initial Jobless Claims data will be featured in the US economic docket ahead of Friday’s Retail Sales figures.”
“On the downside, the initial support is located at $1,820 (Fibonacci 50% retracement of the January-March downtrend) ahead of $1,800 (psychological level, 100-day SMA). As long as XAU/USD doesn’t make a daily close below the latter, buyers are likely to remain in control. Finally, $1,785 (Fibonacci 38.2% retracement) aligns as the next support if the outlook turns bearish.”
“On the upside, the first obstacle lines up at $1,843 (May 7 high). Above that level, the 200-day SMA and the Fibonacci 61.8% retracement from a significant resistance at $1,850. In case gold manages to clear that hurdle, it could target $1,860 (static level).”
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.