Starting out a fresh week on Monday, gold remains in a bullish consolidative mode near $1780 levels as rising covid infections and China’s boost to gold imports render XAU-positive.
XAU/USD gathers strength to test $1800 as USD remains vulnerable
“US-Russia geopolitical tensions and the continued rise in the covid infections globally also lifted gold’s safe-haven appeal.”
“Reports that China has granted domestic and international banks permission to import large amounts of gold into the country could continue to offer support to the gold bulls.”
“Looking ahead, the sentiment on Wall Street and upbeat on the US infrastructure spending plan will be closely eyed for fresh impetus.”
“A sustained break above the channel resistance at $1784 is likely to trigger a fresh rally towards the $1796 measured target.”
“If the price closes the hourly candlestick below the upward-sloping 21-hourly moving average (HMA) at $1777 then a test of the channel support at $1773 could be in the offing.”
“The bullish 50-HMA support at $1766 could rescue the XAU bulls. Further down, the psychological $1750 level could challenge the bearish commitments.”