At Last, Gold Hits $1,800/Oz Price Target

At Last, Gold Hits $1,800/Oz Price Target

Gold remained in a consolidation range in the early Asian session on Wednesday but has now picked up bullish steam recording new multi-year highs.

The precious metal has risen for the fourth consecutive session now largely due to expectations of additional stimulus packages from the Federal Reserve to cushion the economic impact from the resurgence of Covid-19 cases.

The US Coronavirus crisis crossed a new milestone of over 3 million confirmed cases yesterday as more states are recording significant increases in new infections and some states are now faced with a shortage of ICU hospital beds.

Meanwhile, lockdown restrictions have been reimposed in the city of Melbourne in Australia, as government officials scramble to prevent a second wave of the virus.

However, the main reason for the impeccable bullish strength shown by gold in recent hours is due to the dovish comments of some Fed officials on Tuesday. Three Fed policymakers explained that they were worried about the infection rate of the virus in the US as it threatens to weigh heavily on consumer spending and job gains just as some stimulus programs were set to expire. One policymaker added that the central bank has already pledged further support ahead.

Considering that there aren’t any major economic release data today, gold will likely capitalize on this bullish wave and approach the $1,810 region.

XAUUSD – Daily Chart

Gold (XAU) Value Forecast — July 8

XAU/USD Major Bias: Bullish

Supply Levels: $1,810, $1,815, and $1,830

Demand Levels: $1,796, $1,789, and $1,780

Gold has finally snapped the $1,800 price target after several weeks of back-and-forth. The yellow metal rose aggressively after it bounced-off our prevailing ascending trendline yesterday.

Considering the overwhelming bullish bias, we are likely to see gold at $1,810 in the coming hours.

However, we could also see a corrective dip from this level to the $1,790 region considering that gold is now trading in overbought territory.

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