Dhwani Mehta Gave Target Levels for Gold Price

Dhwani Mehta gave target levels for gold price. Dhwani Mehta, author of Fxstreet, announced target levels.

Fxstreet writer Dhwani Mehta pointed out that the $ 1,900 level for the gold price has remained on target this week, and stated that growing inflation concerns are being raised against increasing tips given by the FED.

Gold May Experience Correction Before $ 1,900

Gold reached $ 1,890 again, the highest level in three months, but completed the week near $ 1,880, closing the third consecutive week with an increase. The gold price found support from the FOMC minutes, which offer the finest hints on reducing, while increasing inflation risks continue to support traditional inflation protection. In addition, persistent weakness in US dollar and Treasury yields reflected positively on gold, in an environment of expectations for a faster global economic recovery from vaccines. On the other hand, the crypto market collapse has fueled excitement around the precious metal seen as a "safe haven". As the new week begins, the inflation narrative will continue to play a decisive role in the gold trade.

Levels to Watch

Technical indicators reveal that after the weekly close of $ 1,881, the price of gold is squeezed between two key hurdles on either side. On the negative side, immediate support is seen at $ 1,879. A strong support at $ 1,871 could limit any reversal from higher levels. This support is the convergence of the previous day's low, pivot point one-day S1 and 38.2 percent Fibonacci in one week. Acceptance below the latter could trigger a decline towards $ 1,858.