- Stimulus Optimism & Vaccine Updates – Gold Retests $1,808
- Bullish U.S. Dollar Weighs on Gold Price Forecast – Resistance at $1,808
- Gold bullish mode persists above 1,805 levels today, targeting 1,814 and 1,819.
During Friday’s Asian trading session, the safe-haven-metal price failed to stop its previous-day downward rally and remained depressed around the $1,800 level. Gold price forecast remains neutral below 1,808 level. The reason behind its neutral bias could be the stronger U.S. dollar and safe-haven appeal.
On Friday, the U.S. dollar was up as the number of COVID-19 cases involving the Delta variant rose globally. This tends to underpin the safe-haven assets, including the U.S. dollar. On the flip side, the upbeat market sentiment, backed by the combination of factors, has also played a significant role in undermining gold prices.
Stimulus Optimism & Vaccine Updates – Gold Retests $1,808
The latest optimism over the U.S. vaccine positively impacted the market trading sentiment, as it helps reducing panic in the market. Consequently, it kept the gold prices under pressure.
The increased number of COVID-19 cases, involving the Delta variant, probes the risk-off market sentiment. The risk-off sentiment is supporting bullish bias in gold on Friday. Currently, the yellow metal price is trading at 1,805.32 and consolidating between 1,801.41 – 1,808.64.
Bullish U.S. Dollar Weighs on Gold Price Forecast – Resistance at $1,808
Despite the upbeat market sentiment, the broad-based U.S. dollar succeeded in extending its previous-day upward rally. Whereas, the pickup in U.S. Treasury bond yields was also seen as one of the critical factors that benefitted the U.S. dollar. Anyhow, the upticks in the U.S. dollar kept the gold prices under pressure as gold is negatively correlated with the greenback.
Coronavirus (COVID-19) Fears & Brexit Jitters
On the flip side, the rising covid cases across the globe keep probing the market risk-on sentiment. This becomes the critical factor to helps the gold price limit its losses.
Besides, the Brexit jitters and a lack of transparency over the Fed’s moves ahead of the following week’s Federal Open Market Committee (FOMC) also challenge the market’s upbeat mood. The downbeat prints from the U.S. and Australia negatively impact the market trading sentiment, which may help the safe-haven gold price cap its losses.
Looking forward, the market traders will keep their eyes on the U.S. economic docket. The release of flash PMI later during the early North American session will be in highlights. The coronavirus uncertainties will continue to play a critical role in dominating the market risk sentiment.
Gold Price Forecast – Technical Levels: key resistance at 1,808
Gold 4-Hour Chart
Support Resistance
1796.76 1816.66
1787.10 1,817.68
1,781.47 1,812.05
Pivot Point: 1,802.40
Gold Price Forecast – Technical Analysis: Bullish Breakout
- The gold price forecast remains bullish on Friday as it managed to crossover 50 EMA at the 1,805 level. The yellow metal gold is trading with a strong bullish bias at a 1,808 level. It has surged after violating the 1,805 resistance level.
- On the 4 -hourly chart, gold breaks out of the sideways channel that supports the metal at 1,794 levels. While the resistance stayed at 1,805
- On 2 hour chart, the gold has closed a descending triangle pattern that is expected to support gold at 1,794 level. However, the resistance prevails at a 1,814 level. Thus, the bullish breakout of 1,805 level can extend the buying trend until the next resistance level of 1,814.
- Forex trading market participants will want to stay in a bullish mode above 1,805 levels today, targeting 1,814 and 1,819. All the best!
Looking to trade forex now? Invest at eToro!
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
