Gold price bulls take a breather just below $1,950 after the ongoing upsurge. XAU/USD eyes critical US events for the next move, FXStreet’s Dhwani Mehta reports.
United States Gross Domestic Product data to affect risk trends
“Should the key US US GDP disappoint, implying signs of slowing down in the American economy, the USD could stage a solid recovery. As a result, Gold could extend its corrective downside to test the wedge support at $1,937. Further south, Gold is expected to challenge the previous day’s low at $1,920, below which a test of the $1,900 mark will be inevitable. Gold sellers, however, need a daily closing below the lower boundary of the rising wedge formation, now at $1,933, to confirm a downside break.”
“If the US growth figures dismiss recession fears, which could fuel a risk rally on global markets and down the demand for the safe-haven USD. In such a scenario, Gold could see a fresh rally above the $1,950 psychological level. The next upside target for Gold bulls is envisioned around April 20 2022 highs near $1,958. A sustained move above the latter will bring the last April high of $1,998 back into the picture.”
See – US GDP Preview: Forecasts from ten major banks, firm growth