So far this Friday, the risk sentiment remains tepid amid stabilizing crypto markets and renewed covid concerns, which helps gold price to recover towards $1880. Defending the key support at $1871 is critical for XAU/USD bulls, as $1900 beckons, FXStreet’s Dhwani Mehta briefs.
See – Gold Price Analysis: XAU/USD has the $1959/66 resistance zone in its crosshairs – Credit Suisse
US Markit PMIs eyed for the next trading impetus
“The sentiment around gold price remains underpinned by the continued rise in gold exchange-traded funds inflows and a bearish consolidation in the US dollar alongside yields. Rising inflation expectations also keep the inflation-hedge gold somewhat buoyed.”
“Later in the day, the US Markit Manufacturing and Services PMIs will be closely watched for fresh hints on the economic activity, impacting the market mood and the dollar’s price action.”
“Bulls are defending the weekly rising trendline support at $1871, which also coincides with the 21-simple moving average (SMA). A four-hourly candlestick closing below the latter could negate the bullish potential in the near-term, opening floors for a test of the 50-SMA at $1850. The next powerful support is seen at $1823, where the 100-SMA aligns.”
“Any bounce could meet initial resistance at Thursday’s high of $1884, above which the multi-month tops of $1890 could come into play. A decisive break above $1900 is needed to extend the recent upbeat momentum towards the January 8 high of $1918.”
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