Gold is testing bullish commitments over $1800 once more. According to FXStreet’s Dhwani Mehta, the 21-Daily Moving Average (DMA) at $1804 limits XAU/bullish USD’s potential ahead of the Fed minutes.
“The sustained decline in US rates and cautious market mood continue to strengthen the yellow metal as we head into the FOMC minutes showdown.”
“The Fed’s June meeting minutes will be released at 18:00 GMT on Wednesday, which could disappoint the hawks, especially after the world’s most powerful central bank surprised with a hawkish surprise at its policy meeting last month. Meanwhile, gold’s price will most likely be influenced by broader market sentiment and covid updates.”
“Closes over $1800 on a daily basis are required to confirm a bullish reversal. At $1804, the 21-Daily Moving Average (DMA) provides immediate resistance. If that level is broken decisively, the three-week highs of $1815 will be retested. The 50 and 200-day moving averages are aligned around the $1830 level, which is the next major upside obstacle.”
“Any retracement could be limited by the prior important resistance, now support, of the 100-DMA around $1789 The bulls remain optimistic about more gains as long as this level holds. The next significant support level for gold bulls is expected at Monday’s low of $1785, below which the $1780 round figure may be reintroduced.”/n
