Yet another bullish spurt of gold: the price broke the resistance of 1,900 dollars per ounce, approaching the all-time highs. Gold price forecasts remain bullish as markets fear that the US economic recovery after the Covid crisis will be difficult.
The gold rally is mainly supported by the drop in the US dollar, that has received further impetus in recent days following the recent escalation of tensions between China and the United States, the two largest economies in the world. The greenback was further put under pressure by falling US Treasury yields, which further strengthened the yellow metal.
But investors are primarily concerned that the economic recovery in the United States will be slower due to the Covid epidemic, which shows no sign of diminishing. This, in turn, dragged the USD down to a 22-month low and benefited from the dollar-denominated commodity: commodities paid in dollars, bought more thanks to the favorable exchange rate, benefit from this. Obviously gold also because it is considered a safe haven.
Gold price forecasts: three bullish targets
The trend of gold is bullish, these are the next “obstacles” in the race for the precious metal.
The XAU / USD is still fighting the resistance level at $ 1,903. After this first hurdle, the next target is at $ 1,910 represented by the Bollinger Bands in the four-hour chart. The next hurdle is at $ 1,918, the last limit before the all-time high of $ 1,921.50, in 2011. A target above this high is the strong resistance at $ 1,958, but we still have to wait for this.
Downside, the first “cushion” in the event of falling prices is positioned at the support of $ 1,890, which is the confluence of Fibonacci of 23.6% in the daily chart.