The Gold price is attempting to build on the gains made on Wednesday. As Dhwani Mehta of FXStreet points out, if the golden cross is confirmed, the XAU/USD pair might restart its upward trend.
Markets are expected to stay on edge as a result of the Omicron problems. Should the risk rebound acquire traction in the next few sessions, the dollar might continue its upward trend in line with bond rates, causing the gold market to resume its downward trend as a consequence.
On the other hand, fears over the newfound COVID strain might serve to buffer any decline in gold prices, particularly after a single Omicron case was identified in the United States, which caused markets to get nervous.
For gold bulls, the convergence of the 50, 100, and 200-day moving averages around $1,792 continues to be a difficult nut to crack. The $1,800 mark appears to be the next significant upward goal.
If the rebound gains traction, Gold bulls may be able to repeat Wednesday’s high of $1,809, after which they will be looking to test the previous month’s high of $1,814 on their radar.
As risk appetite returns, gold recoups some of its intraday losses near $1,775 per ounce.
In addition to the market’s rush for conventional, relatively secure assets such as US Treasury bonds and the Japanese yen, the bearish tilt of the index options has weighed on the price of gold.
Gold Technical Evaluation
XAU/USD CHART Source: Tradingview.com
Gold’s daily chart is indicating a possible turnaround in the continuing decline, with the 50-Daily Moving Average (DMA) crossing the 200-Daily Moving Average (DMA) from below.
It will be proven that a golden cross has formed if the above-mentioned averages continue to sustain the configuration on a daily closing level.
With the 14-day Relative Strength Index (RSI) still moving below the centerline, however, a significant fundamental trigger will be required to turn the downtrend around.
For gold bulls, the intersection of the 50, 100, and 200-day moving averages around $1,792 continues to be a difficult nut to crack.
The $1,800 mark appears to be the next significant upward goal. If the rebound gains traction, Gold bulls may be able to repeat Wednesday’s high of $1,809, after which they will be looking to test the prior month’s peak of $1,814 on their radar.
The negative requires a persistent breach beneath Tuesday’s low of $1,770 to restart the downtrend toward the November 3 low of $1,859.
The psychological threshold of $1,750 will be tested when the market moves farther south.
Review Of The Fundamentals
The Gold market is attempting to build on Wednesday’s recovery as risk-off investors are seen easing off, providing some assistance to the US interest rates, according to Bloomberg.
The Dollar is also receiving new bids as speculators examine the ramifications of the Federal Reserve’s hurried trimming on the improving economy, particularly in light of the coming concerns from the Omicron COVID form.
Should the risk rebound acquire traction in the next few sessions, the Dollar might continue its upward trend in line with bond rates, causing the gold market to resume its downward trend as a consequence.
