Gold rallied on Friday and posted third straight week gains as the dollar weakened. It started today at $ 1,804 levels. Haresh Menghani of FXStreet states that this week, he expects XAU/USD to announce a new direction momentum from the US.
Where is the focus on the gold price now?
Pointing to Jerome Powell’s speech this week, the analyst uses the following expressions: “The market focus will remain on the latest US consumer inflation figures to be announced on Tuesday. This, along with Fed Chairman Jerome Powell’s semi-annual congressional blaring on Wednesday and Thursday, will play an important role in determining the next leg of a momentum move for XAU/USD. ”
Menghani, “1. Drops below $800 could continue to find some support near the horizontal support of $1,795-93, which should act as a key turning point for intraday traders. A downside break could trigger some technical selling and further accelerate a slide towards the $1,780-78 support zone. The continuation of some selling below the $1,775 level will remove any short-term positive bias and make the commodities vulnerable. The next relevant support was stable above the $1,762-60 zone. Beneath this, XAU/USD could pull back to retest June lows around the $1,750 area.”
What are the critical levels in precious metal?
According to Menghani’s analysis, the $1,815-18 zone seems to have emerged as an immediate resistance. It is followed by the 200-day SMA, around the $1,828-29 zone. Beyond that, sustained strength will be seen as a new trigger for bullish traders, laying the groundwork for an extension of the recent positive momentum witnessed over the past three weeks.
“The commodity could then aim to break an intermediate hurdle around the $1,852-55 zone and test the next major hurdle near the $1,870 level,” the analyst says. For more gold news Cryptocoin. com “Gold Price Forecast: Which Levels Are Targeted?” You can check our article.