Gold Price Analysis: XAU/USD is in bullish consolidation before the next leg up resumes

Gold (XAU/USD) added to Tuesday’s corrective rally and settled above $1725 on Wednesday. The yellow metal stabilizing at higher levels so far this Thursday as XAU/USD eyes additional upside ahead of US President Biden’s speech, FXStreet’s Dhwani Mehta reports.

Key quotes

“The bulls seem to gather pace for the next leg higher, despite the firmer risk tone. So long as the greenback remains on the back foot amid risk-on action on the global stocks, gold could likely extend its recovery momentum. Although Biden’s address to the nation, scheduled later on Thursday at 13:00 GMT, could threaten the metal’s rebound from multi-month troughs.”

“XAU/USD is looking to test the bearish 100-simple moving average (SMA) at $1749, with the Relative Strength Index (RSI) firmly holding up in the bullish region, currently at 65.20. Further up, some resistance is seen around the $1765 region.”

“The horizontal 50-SMA, the previous resistance now support, at $1714 could guard the downside. The next relevant support awaits at the upward-sloping 21-SMA at $1708. The $1700 round number would be the level to beat for the bears.”

“Source from fxstreet”

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