XAU / USD Analysis

XAU / USD Analysis

The rapid rise pushed Gold (XAU / USD) to an all-time high of $ 2055 on Wednesday and is currently trading near that level at $ 2050. Dhwani Mehta from FXStreet claims that the technical charts may be limited upwards and that the yellow metal is at risk of a correction, but there will be an upward trend in general. “The disappointing US private sector ADP report fueled the worries of a pessimistic NFP report to be released this Friday and further increased the dollar's pain. Meanwhile, possible prospects of overcoming the US subsidy recession have also strengthened yellow metal. Demand for gold rose with the continued rise in coronavirus cases around the world. Virus concerns continued to increase economic recovery prospects. " As seen on the 4-hour chart, XAU / USD encountered several rejections in the two-week bullish resistance around $ 2056. So it seems likely to be a correction. In general, the upward trend will continue, with record highs in the yellow metal being tested again. The bullish trend remains unchanged as long as the spot remains above the 21-4H Simple Moving Average (SMA) at $ 2001. "