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Gold (XAU/USD) is attempting a minor bounce after falling over 1% to eleven-day lows at $1830 on Tuesday. However, the daily chart shows that a bear cross is in the making for the yellow metal, suggesting that the sellers could remain hopeful despite the latest bounce, FXStreet’s Dhwani Mehta briefs.

See – Gold Price Analysis: Physical demand to bolster XAU/USD in 2021 – CE

Key quotes

“Wednesday’s pullback in gold can be mainly attributed to the progress on a likely US fiscal stimulus deal. The Senate voted 50 to 49 in a straight party-line decision in order to push through a $1.9 trillion aid package proposed by President Joe Biden. However, the covid vaccine-driven optimism could cap the recovery attempts in gold.”

“A retest of Tuesday’s low at $1830 cannot be ruled, below which the January 13 low of $1803 would come into play. Further south, the November 30 high at $1790 could offer some support to the XAU bulls.”

“The buyers need to find acceptance above the critical $1854, where the 21 and 200-DMA look to coincide. The next upside target awaits at the 50-DMA of $1858. The path of least resistance, therefore, appears to the downside.”