Gold (XAU/USD) added to Tuesday’s corrective rally and settled above $1725 on Wednesday. The yellow metal stabilizing at higher levels so far this Thursday as XAU/USD eyes additional upside ahead of US President Biden’s speech, FXStreet’s Dhwani Mehta reports.
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“The bulls seem to gather pace for the next leg higher, despite the firmer risk tone. So long as the greenback remains on the back foot amid risk-on action on the global stocks, gold could likely extend its recovery momentum. Although Biden’s address to the nation, scheduled later on Thursday at 13:00 GMT, could threaten the metal’s rebound from multi-month troughs.”
“XAU/USD is looking to test the bearish 100-simple moving average (SMA) at $1749, with the Relative Strength Index (RSI) firmly holding up in the bullish region, currently at 65.20. Further up, some resistance is seen around the $1765 region.”
“The horizontal 50-SMA, the previous resistance now support, at $1714 could guard the downside. The next relevant support awaits at the upward-sloping 21-SMA at $1708. The $1700 round number would be the level to beat for the bears.”