Gold price outlook: XAUUSD recovery aims towards $1,990 zone. The worth of gold continues to rise in spite of a stronger US dollar.
Gold Key Considerations
- Despite a stronger US dollar, the gold price continues to recover, which supports low Treasury bond rates.
- A wary atmosphere before the House vote on the US debt ceiling agreement. And conflicting US statistics give XAUUSD buyers the upper hand.
- The Gold Price remains on buyers’ radar after a sustained breach of the $1,950 resistance convergence, which is now support.
Gold recovers from 10 – week weakness
After rebounding to its lowest levels in ten weeks, the price of gold (XAUUSD) pulls up offers to renew a day’s high. As buyers rejoice a two-day winning run. As markets wait for the US House of Reps to vote on the debt ceiling accord. the XAUUSD misses to explain the recent recovery in the (DXY). Though it does appropriately applaud the depressed Treasury bond rates. The Fed’s Beige Book, and US JOLTS employment opportunities for April. In addition to inflation cues from the Eurozone, are other significant things to keep an eye on.
In addition to pre-data management plus the end of the month fusion. The uneven US data and China’s willingness for more stimulus in the face of dismal activity statistics favor the XAUUSD price. Additionally, since gold is only a hair above the near-term major support connection. Prior resistance, optimism that US policymakers would somehow avert the US crisis and aggressive Fed wagers seem to be pushing the price of the precious metal.
Technical Perspective and Key Levels
The 5-DMA and the earlier monthly bottom, which served as a resistance that converted into support at $1,950 for gold. Are now acting as support, according to our Technical Intersection Signal.
To further persuade the proponents of commodities, the XAU/USD rebound subsequently cleared the $1,957 support level. And the Fibonacci level of 23.6% in a single day.
This must be observed that in order to encourage XAUUSD sellers. The Gold Price weakening over $1,950 needs confirmation from the $1,945 support stage. Which comprises the Pivot Point a month’s S1 & Fibonacci 61.8 percent on 1-day.
In contrast, the Fibonacci sixty-one percent on 1-week & Pivot Point one-week R1 may tempt gold purchasers. Before leading them to the intersection with the Fibonacci 61.8 percent on 1-month. Where is about $1,990.
In general, until it rises beyond $1,950, the price of gold is still on buyers’ radar screens.
