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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.”

 

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