Gold Prints Fresh Multi-Year Highs as It Approaches the Long-Awaited $1,800 Mark

Gold (XAU/USD) climbed to fresh multi-year highs in the last few hours, with bulls aspiring to close-in on the $1,800/oz price mark.

Following a modest consolidation in the Asian session on Wednesday, the yellow metal picked up fresh bullish steam and added to the overnight break above the previous one-week-old consolidation range. Not surprisingly, worries over a second wave of the virus were one of the major catalysts for this surge.

Investors worry that renewed lockdown restrictions to control the outbreak would impede economic recovery and will likely compel central banks to implement additional stimulus measures to cushion the impact on the market. Consequently, this extended further support to the non-yielding commodity to gain positive momentum.

Meanwhile, the US dollar remained subdued in a consolidation range despite a positive pickup in the US Treasury bond yields.

Moving on, the market’s focus will now be fixed on the important macro data coming from the US today. Wednesday’s US economic docket features the release of the ADP report, ISM Manufacturing PMI, and minutes from the FOMC monetary policy meeting.

Gold (XAU) Value Forecast — July 1

XAU/USD Major Bias: Bullish

Supply Levels: $1,790, $1,795, and $1,800

Demand Levels: $1,779, $1,770, and $1,765

Gold has performed remarkably in the Asian session on Wednesday and broke above the key $1,779 resistance overnight. We will likely see this positive momentum capitalized upon in the European session as we etch closer to the $1,800 target. Notably, the projected trendline in the MACD has been broken and we are likely to achieve the $1,800 target soon.

Any decline from this level will be considered as a dip-buying opportunity and will likely serve as a bounce for higher price achievement for gold.

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