Gold Price Analysis: XAU/USD to confront stubborn resistance around $1797

Gold extends gains towards $1800 as Treasury yields ease. XAU/USD is likely to face stiff resistance near $1795-$1800, FXStreet’s Dhwani Mehta reports.

See – Gold Price Analysis: US Treasury yields and USD to ease later in the year, allowing for XAU/USD gains – HSBC

Growing covid concerns weigh on stocks, yields

“The US rates could resume their decline should the risk-off mood worsen, benefiting gold further. The relentless rise in the covid cases threatens to derail the global economic recovery, which unnerves the investors. Amid a lack of relevant economic data, gold will continue to follow the yields for fresh directives.”

“Gold remains on track to test the rising wedge hurdle at $1797 en-route $1800.” 

“The price has managed to hold above the 21-simple moving average (SMA) at $1775, with the bullish Relative Strength Index (RSI) pointing towards extra gains.”

“A four-hourly candlestick close below the 21-SMA at $1775 will recall the sellers.”

“The confluence of the wedge support and 50-SMA at $1757 could emerge as strong support.”