Gold Price Forecast: XAU/USD simmers next push higher toward 200-DMA at $1825

Gold suffered a dip below $1,800 on Monday but recovered quickly, trading around $1,815 early on Tuesday. US stimulus optimism and Delta fears are set to boost XAU/USD’s recovery, in the view of FXStreet’s Dhwani Mehta.

See – Gold Price Forecast: XAU/USD to find support from negative real yields and inflation fears – ANZ

US stimulus news lifts gold, technicals favor bullish traders

“The focus will remain on the risk trends and dynamics in the greenback and the yields for near-tern trading opportunities. The second-tier US housing data could throw some fresh light on the economy and the Fed’s next policy moves.”

“Gold is battling the critical resistance at $1818 on its recovery mode. That level coincides with the confluence of the 21-Simple Moving Average (SMA) and 50-SMA. Acceptance above $1818 could trigger a fresh advance towards the 200-DMA at $1825. Further up, the three-week highs of $1834 could be back in play.”

“An immediate cap is seen at the horizontal 50-SMA at $1812, below which the descending trendline resistance now support, now at $1808 will get tested. A sustained break below that level could expose the mildly bullish 100-SMA at $1798.”