Gold (XAU/USD) has shown stability above the $1,730 pivot level in the early European session as bears scramble to reclaim dominance amid resurgent US dollar demand.
The yellow metal capped its 3-days bull run at the $1,740 resistance level in the early Asian session on Thursday while a risk-off market sentiment brews and is reinforcing the safe-haven demand for the USD.
The budding risk-off sentiment was triggered by the grim US economic outlook foreshadowed by the US Fed Chair, Jerome Powell, as the apex bank remains dedicated to bond-buying and injecting stimulus to support the economy.
Despite the budding USD demand, the growing US-China and Australia-China tensions could continue to support gold’s safe-haven appeal as well. However, the dollar-denominated commodity is likely to remain under the influence of the USD price action and risks further price correction if the dollar risk-off sentiment gets stronger considering that there are more US macroeconomic data to be released, including the key US Continuing Jobless Claims Data.
Gold (XAU) Value Forecast — June 11
XAU/USD Major Bias: Bullish
Supply Levels: $1,740, $1,753, and $1,763
Demand Levels: $1,722, $1,710, and $1,700
Gold has regained its bullish momentum and will likely continue riding on it in the near-term. The momentum to the upside looks very sustainable as it is the current ”path of least resistance.” A clean break and close above the $1,740-45 will likely cement this momentum further and could send the gold price closer to the long-awaited $1,800 level. Gold price will have to fall below $1,700 for this upward momentum to be negated.
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