Gold Price Analysis: XAU/USD set to test three-months highs at $1890 amid crypto volatility
This Thursday, gold price is looking to extend the recovery from near the $1860 region. In the view of FXStreet’s Dhwani Mehta, XAU/USD looks to challenge three-month highs despite Fed’s tapering jitters.
XAU/USD on track to test the $1892 rising wedge resistance
“Gold is trending within a rising wedge formation on the four-hour chart, as markets weigh in the implications of the FOMC minutes. Also, the persisting volatility in the crypto space keeps the buoyant tone intact around gold. However, the further upside appears elusive unless the $1900 mark is recaptured on a sustained basis.”
“Gold bulls have managed to defend the lower boundary of the wedge, now placed at $1861 while the resistance aligns at $1892. Also, the fact that gold price trades comfortably above the 21-simple moving average (SMA) at $1866 adds credence to the additional upside.”
“A breach of the $1866 21-SMA could put the wedge support at risk once again. The next target in sight for the sellers is seen at the upward-sloping 50-SMA at $1846.”