Gold Likely to Retest Previous Highs, Regains Dominance Above $1,800

Gold (XAU/USD) has reversed from its recent dip to the $1,796 region and is now trading well above the $1,800 mark.

The yellow metal saw a modest pullback yesterday after reaching its highest point since September 2011. The pullback was largely caused by fresh demand for the US dollar, which tends to impair the dollar-denominated commodity.

However, the dominant risk-off sentiment lent some support to gold’s safe-haven appeal and limited further losses. Meanwhile, the global risk sentiment worsened after the US reported a record-breaking number of new Covid-19 infections, over 60,000 on Thursday alone.

Investors remain worried that the United States’ decision to sanction Chinese officials over human rights violations in Hong Kong could further worsen the US-China tensions.

Moving on, today’s market dynamics will be largely influenced by developments surrounding the Coronavirus crisis considering that there is no major economic release today.

Gold (XAU) Value Forecast — July 10

XAU/USD Major Bias: Bullish

Supply Levels: $1,815, $1,825, and $1,830

Demand Levels: $1,800, $1,795, and $1,789

Gold suffered a dip below the $1,800 mark yesterday but appears to have stabilized above that line at press time. The dip was quickly capitalized on by buyers who are now looking to send the price higher. We are likely to see a retest of previous highs in the near-term as our MACD indicator portrays an imminent surge.

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