Gold eyeing $1200 – FXStreet

FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, sees further upside gains possible for XAU/USD, expecting a break above 1197.17 to pave way for 1200 levels.

Key Quotes

“Currently, XAU/USD trades near highs at 1195.50, extending beyond 20-DMA placed at 1193. The pair continued its upbeat momentum this session as the USD remains heavily offered across the board.”

“The daily RSI at 51.17 has crept in to the bullish territory indicating further room for upside.”

“The upcoming US retail sales data are expected to come in slightly weaker than previous reading, which may drag the greenback even lower, thereby lifting gold higher.”

“To the upside gold prices may advance for a retest of previous highs at 1197.17. A break above that, the next resistance would be faced at 1200 – psychological level.”

“Gold bulls would completely take control above 1200 – crucial resistance and storm its way to 1207-1209 resistance zone.”

“In case the US retail volumes data beat estimates, USD bulls will jump back into the bids knocking-off XAU/USD to 1188.74 immediate supports where 50-DMA and 5-DMA converge. A break below the last, selling pressure may intensify drowning the pair to the trend line support of 1181.”

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