As holiday-thinned light trade provides purchasers with favorable conditions, the price of gold is continuing its upward trend from the previous week.
However, China’s continued Covid reopening-led risk-on mood is the primary driver of the gold price increase.
The safe-haven US Dollar is suffering due to market optimism, which increases the cost of bullion priced in USD for overseas buyers. To break through the Fibonacci 38.2% one-week barrier at $1,810, the gold price needs to have a recent surge in buying.
The Fibonacci 23.6% one-week at $1,814 is the next significant upward barrier, and if it is crossed, a move toward the pivot point one-week R1 at $1,820 cannot be ruled out.
For proponents of gold, the benchmark is the $1,825 high from the previous week. As an alternative, gold buyers have immediate support from the SMA5 one-day at $1,804.
The $1,800 level is at risk if the latter makes a firm break below it. The intersection of the SMA10 one-day, Fibonacci 61.8% one-week, and SMA200 one-hour defines that level.
