Gold Price Forecast: XAU/USD to enjoy further gains on a break above $1,940

Gold stages a decent comeback after finding strong bids under $1,900. Acceptance above 21-Daily Moving Average (DMA) at $1,940 is critical for XAU/USD for additional recovery gains, FXStreet’s Dhwani Mehta reports.

Daily technical setup turns in favor of bulls

“The road to recovery needs acceptance above the upward-sloping 21-DMA at $1,940 on a closing basis. Recapturing the latter will trigger a fresh upswing towards Monday’s high of $1,955, above which bulls will target the February 24 highs of $1,975.”

“If bears take out the daily lows of $1,923, then the correction from 19-month highs could resume, opening floors for a retest of $1,895. The additional declines will call for a test of the ascending 50-DMA at $1,873. Ahead of that, the February 24 lows of $1,878 will challenge the bullish commitments.”