XAU/USD : Bulls are doing good and playing at front foot.

General overview: Joe Biden sworn in as the 46th US President on Wednesday, Gold (XAU/USD) surged nearly 2% to reach the highest levels in two weeks above $1870. That came in on the heels of the continued rise in the US inflation expectations, as markets remained hopeful that the Biden administration would boost stimulus to deal with the economic blow from coronavirus pandemic. Gold extended the break higher, having confirmed a falling channel breakout in Wednesday’s Asian trading. The technical Confluences Indicator shows that gold has some additional room to the upside, as the market is making room for the upside moment. The choppy market range created in the market as the market going to established buy signals in the market. XAU bulls may run through strong offers at $1874, which is the SMA50 one-day. The previous week’s high at $1864 is the level to beat for the gold buyers. Gold cheers higher US inflation expectations on Biden’s stimulus hopes. Risk-on mood downs the US dollar ahead of weekly jobless claims.

Technical analysis: We can conclude from a technical point of view that the gold price climbs high as the metal price goes higher. Precious metals are perceived as a good inflation hedge and store of value, and their prices tend to rise alongside inflation expectations and the amount of quantitative easing on the daily basis chart we can say that market set towards the higher side for the time while the current rate of the market is 1874 and the indicator is also supporting the market towards the higher side the RSI is also indicating above 50 levels and MACD is also above the zero levels as creating the bullish signals. The support level of the market is 1824 followed by 1774 and resistance is 1924 followed by 1974

Trade idea: We can conclude that investors can go for buy at the level 1870 and target will be 1900, 1925 and stop loss is 1820.

 

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