Gold Price Analysis: XAU/USD to test $1872 amid US stimulus hopes and covid woes
|Gold (XAU/USD) extended the bounce from six-week lows on Tuesday, finishing the day with moderate gains well above the $1850 level. On Wednesday, the yellow metal gathers pace to test the $1872 hurdle ahead of US CPI, FXStreet’s Dhwani Mehta reports.
See – Gold Price Analysis: XAU/USD to gun towards $2,000 over 2021 – TDS
Key quotes
“Gold looks to build onto Tuesday’s rebound on Wednesday, with all eyes awaiting the US CPI report and the House vote on Trump’s removal from the Office after the deadly Capitol Hill attack. The greenback and the US rates continue their overnight weakness, which is likely to keep gold buoyed.”
“The US stimulus optimism and surging coronavirus cases in the US, Japan and China also boosts gold’s safe-haven appeal. However, the bounce in the global stocks amid a surge in oil prices and stimulus hopes could probably cap the gains in the precious metal. Markets will also pay close attention to the Fedspeak amid recent tapering talks.”
“Gold price is struggling to clear the critical horizontal resistance seen at $1863. Acceptance above that level could validate the bullish pattern, calling for a test of the bearish 100-hourly moving average (HMA) at $1872. Buyers could then aim for the 200-HMA at $1899.”
“The 21-HMA at $1854 offers immediate support, below which the 50-HMA at $1850 could guard the downside. The pattern support at $1841 is likely to be tested if the selling pressure intensifies.”
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.