As it refreshes three-week highs, gold price is extending its optimistic momentum, finally yielding a firm break above the $1800 barrier.
The sustained bearish sentiment around the US dollar continues to auger positively for gold prices denominated in US dollars. The dollar has borne the brunt of the uncertainty around the US Federal Reserve’s (Fed) future monetary policy action, particularly in light of a positive NFP report and a jump in the unemployment rate to 5.9% in June.
Meanwhile, optimism about the Eurozone reopening dampens demand for the dollar as a safe haven, boosting gold’s price. Concerns about the delta covid variant flareups in Asia, as well as their impact on the global economic recovery, have bolstered gold’s safe-haven appeal.
On Monday, the bullish pledges were confirmed by a daily close above the 100-Daily Moving Average (DMA) at $1790, with the bulls now targeting the bearish 21-DMA at $1809. Acceptance above $1800 is required to release fresh upside, confirming a bullish reversal from two-month low of $1751./n
