Gold price rebounds towards four-month highs above $1900. consistent with FXStreet’s Dhwani Mehta, XAU/USD is about to retest multi-month highs – bullish potential appears limited, though.
See – Gold Price Analysis: XAU/USD has steam to surge above the $2072 2020 high – Commerzbank
All eyes on key US macro news for fresh trading impulse in gold
“Bulls look recapture $1900, courtesy of the recovery within the risk sentiment that weighs on the safe-haven dollar. Renewed US-China trade optimism has lifted the market mood. each side officially confirmed that the US Trade Representative Katherine Tai and China’s Vice-Premier Liu He had candid and constructive trade talks.”
“Gold remains supported amid the continued surge in covid cases in Asia and fresh lockdown within the Australian state of Victoria.”
“Markets now shift their focus towards a fresh batch folks data due for release afterward Thursday, with the Durable Good and Core PCE closely eyed. within the meantime, the narrative on the inflation risks and tapering bets will still impact gold price.”
“A break above Wednesday’s high at $1913 would expose the January high of $1918. However, a four-hourly closing below the critical 21-SMA support at $1891 could trigger a drop towards the ascending 50-SMA at $1879.”