Gold Price Forecast: XAU/USD bulls crave for more gains above $1800

Gold price is once again testing bullish commitments above $1800. The 21-Daily Moving Average (DMA) at $1804 limits XAU/USD’s bullish potential ahead of Fed minutes, according to FXStreet’s Dhwani Mehta.

Fed minutes could pour cold water on the central bank’s hawkish turn

“Heading into the FOMC minutes showdown, the persistent weakness in the US rates and cautious market mood continue to underpin the yellow metal.” 

“The next direction for gold depends on the Fed’s June meeting’s minutes dropping in at 18:00 GMT later on Wednesday, which could disappoint the hawks, especially after the world’s powerful central bank delivered a hawkish surprise at its policy meeting last month. In the meantime, the broader market sentiment and covid updates will likely influence gold’s price action.”

“Daily closing above $1800 is critical to confirm a bullish reversal. The 21-Daily Moving Average (DMA) at $1804 offers immediate resistance. A firm break above that level will call for a retest of the three-week highs of $1815. The next relevant upside hurdle is aligned around the $1830 level, where the 50 and 200-DMA close in.”

“The previous crucial resistance now support of 100-DMA at $1789 could limit any retracement. So long as this level holds, the bulls remain hopeful for further upside. The next relevant cushion for gold bulls is seen at Monday’s low of $1785, below which the $1780 round figure could be brought back into play.”