Gold Regains Bullish Sentiment As the Dollar Continues to Slump

Gold Regains Bullish Sentiment As the Dollar Continues to Slump

The US dollar (DXY) experienced a sharp decline in the early North American session which boosted gold (XAU/USD) prices to the $1,991 level. The yellow metal grew by about $50 from its daily low, recording a daily high of $1,991 (its highest point since August 11) before retreating to $1,980 where it currently is.

Gold has now pared more than half of the losses it suffered in last week’s collapse, which saw the commodity drop from $2,030 to $1,860. The precious metal rebounded in the American session on the back of a subdued USD coupled with strong technical support.

Meanwhile, analysts at Citibank have forecasted that gold will likely reach $2,100 within the next three months and $2,300 in six to twelve months. They cite the outstanding pace of ETF investor inflows (which weakens the dollar) and negative real yields as the major proponents for gold’s rally.

XAUUSD – Hourly Chart

Gold (XAU) Value Forecast — August 17

XAU/USD Major Bias: Bullish

Supply Levels: $1,990, $2,000, and $2,015

Demand Levels: $1,950, $1,930, and $1,900

As projected in this morning’s analysis, gold has broken into a bull-run and has snapped the $1,960 resistance, climbing over the top of the $1983 resistance (the top line of our consolidation range) and has now returned into the region. We expect to see further gains in the near-term as our MACD is now just slightly above its neutral point. However, a slight retrace to the $1,960 could be seen before the surge occurs.

That said, the $2,015 resistance is now our next target to look out for.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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