Gold set to retest $1216 – FXStreet

FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, shares the technical outlook for XAU/USD, expecting the pair to retest 1216 and above it 1227.66 levels.

Key Quotes

“Gold prices in terms of US dollar (XAU/USD) broke above the crucial 100-DMA and reached a five day high at 1220 levels before ending at 1210.18 on Thursday.”

“Gold traded higher all through the day, however gave back gains after above-estimates US macro data bolstered the case for rate-hike sooner than anticipated, boosting USD bulls.”

“Currently, XAU/USD clings on to the 10-DMA located at 1209.92 levels, with a day’s high of 1211.63 and day’s low of 1209.09 levels.”

“The pair is set to retest 100-DMA placed at 1216 levels and beyond that 20-DMA located at 1227.66 levels.”

“However, the strength in the pair remains uncertain indicated by a flattish daily RSI standing at 41.22 levels.”

“A failure to breach 100-DMA, the pair may once again bounce-off from that level and test 5-DMA located 1206.80 levels below daily lows.”

“XAU/USD remains supported so long as it hold above crucial 1200 levels.”