- Summary:
- Gold price takes out the 1850 resistance as weakness on the greenback facilitates flight to safety and XAU/USD upside push.
Gold price spiked a few minutes ago as the greenback’s early session strength faded. The XAUUSD pair has hit 2-week highs to continue the V-shaped reversal, following a weakening of the US Dollar in the New York session.
Among headlines driving gold prices are US stimulus hopes, rising concerns about US-China tensions, and falling US bond yields this Monday.
Reuters reported earlier that the US was preparing to renew its sanctions onslaught on top Chinese officials over their alleged involvement in the Hong Kong crackdowns. Expectations of bi-partisan agreement on a new stimulus package and a weaker tone on US bond yields are driving down the greenback and promoting safe-haven interest in the yellow metal.
Gold price is up 1.42% at the time of writing as it trades at 1864.20.
Technical Levels to Watch
Today’s 1.42% spike met resistance at 1869.39, having cleared the 1850.78 level by requiring 3% upside penetration to confirm the break of that level. If the XAUUSD earns 1850.78, the next target lies at 1881.99 (14 October and 11 November highs). 1900.76 and 1918.68 complete the possible near-term upside targets for buyers.
On the flip side, a stall in the uptrend at 1869.39 could allow for a resumption of the downtrend on gold prices, targeting 1850.78 and 1821.55 as immediate downside targets. Additional targets for sellers lie at 1800.34, 1788.90, and recent lows at 1762.51.
XAU/USD Daily Chart
