Gold Price Forecast: XAU/USD points to more upside towards $1850

NEWS | 9/6/2021 6:26:26 AM GMT | By FXStreet Insights Team

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Starting out a fresh week on Monday, gold is easing from two-month tops, posting small losses so far, as the bulls take a breather in the aftermath of the NFP shocker. Why $1850 appear to be the next bullish target for XAU/USD? FXStreet’s Dhwani Mehta gives her reasons.

Stimulus expectations likely to keep gold bulls hopeful amid light trading

“Investors cheer an extended period of monetary support amid the Chinese economic slowdown and faltering US labor market recovery, lifting Asian stocks at gold’s expense.”

“The downside appears limited, as dip-buyers could emerge amid a potentially bullish structure on the technical graph. Also, it's worth noting that Labor Day holiday in the US and Canada could exaggerate the moves in gold price.”

“Gold needs a sustained break above the July 15 high of $1834.17 to unleash the additional upside towards the June 16 highs of $1865.”

“The $1850 psychological barrier could test the bearish commitments on its way up.”

“XAU/USD could pull back towards the 100-DMA at $1815 before resuming the next upswing. The 200-DMA at $1809 is the last line of defense for goldbulls.”