Gold Price Forecast: XAU/USD to see additional gains on a sustained move beyond $1,760

Gold gained strong positive traction on Wednesday following the release of the US CPI report. As FXStreet’s Haresh Menghani notes, bulls have the upper hand above the $1,750 level.

See – Gold Price Forecast: XAU/USD trend to shift lower below $1682/71 – Credit Suisse

The $1,745-43 confluence region seems to protect the immediate downside

“Traders might take cues from the US economic docket – featuring the release of Producer Price Index (PPI) and the usual Initial Weekly Jobless Claims. Apart from this, the US bond yields might influence the USD price dynamics and provide some impetus to the non-yielding yellow metal. This, along with the broader market risk sentiment, will also be looked upon for some meaningful trading opportunities.”

“The overnight move back above 100-hour SMA might have set the stage for additional gains. However, any subsequent positive move is likely to confront stiff resistance near the $1,760 region, marking the 50% Fibonacci level of the $1,832-$1,688 downfall.” 

“Some follow-through buying beyond the $1,765 area will be seen as a fresh trigger for bullish traders and lift the commodity further towards the 61.8% Fibo. level, around the $1,777 area. A sustained move beyond should allow bulls to aim back to reclaim the $1,800 round-figure mark.”

“The $1,745-43 confluence region – comprising 100-hour SMA and 38.2% Fibo. level – now seems to protect the immediate downside. Failure to defend the mentioned support might prompt some technical selling and drag the metal further towards the $1,725 zone en-route the 23.6% Fibo. level, around the $1,720 level.” 

“A convincing break below the $1,720 mark will negate any near-term positive bias and turn the XAU/USD vulnerable to slide back below the $1,700 level, towards retesting multi-month lows support, around the $1,688 region.”