Gold Kicks-Off the New Week Maintaining Its Bullish Investor Sentiment

Gold (XAU/USD) resumed its struggle to capitalize on its recent bullish momentum for further gains and was last spotted trading around the $1,770 pivot region.

The rapidly increasing number of new cases globally has illustrated that the fight against Covid-19 is far from over and a full economic recovery will take much longer than expected. Optimism for a sharp V-shaped global economic recovery has become even bleaker and is weighing on investors’ sentiment, further underpinning gold’s safe-haven appeal. This coupled with a fresh US dollar sell pressure has extended further support for the dollar-denominated commodity to likely dominate this week.

However, a slight rebound in the US equity sector has kept a lid on any strong surge in price for the yellow metal for the time being. Also, strong intraday pickup in the US Treasury bond yields has placed additional pressure on the non-yielding commodity. Regardless, gold has retained a positive bias since it broke multi-year highs last week Wednesday.

The recent range-bound price action seen in gold can be categorized as a consolidative move that will likely extend further support for a bull-run towards the ambitious $1,800/oz price mark for gold.

Gold (XAU) Value Forecast — June 29

XAU/USD Major Bias: Bullish

Supply Levels: $1,779, $1,790, and $1,800

Demand Levels: $1,765, $1,758, and $1,745

According to the 4-hour timeframe, we can see the steady development of an ascending trendline within our ascending channel. Based on this outlook, we could see a slight retrace towards the $1,755 level. This drop, if it occurs, will serve as a strong booster for the $1,800 price mark. Likewise, we could also see a quick bounce from this level considering we are in the middle of a range-bound pivot region.

Conclusively, a sustained drop to the downside (below the $1,745 support) appears to be off the table for the time being.

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