- Gold remains poised to test the critical $ 1,850 level.
- Risk appetite weighs on the USD, lifting XAU / USD to weekly highs.
- The one-hour chart confirms a golden cross, with the RSI in the bullish zone.
Gold prices (XAU / USD) continue to move higher at the start of the European session on Thursday, reaching their highest levels in a week around the $ 1,843 region.
The bulls continue to celebrate the renewal of the fiscal stimulus talks in the United States, with a much larger aid package than previously proposed probably on the table in Congress.
Meanwhile, weaker-than-expected data in ADP’s US private sector jobs report, combined with optimism for a coronavirus vaccine, continues to weigh on the USD, benefiting prices of the so-called precious metal. in dollars.
From a short-term technical perspective, gold has confirmed a golden crossover on the 1-hour chart, where the bullish 50-hour moving average has cut the 200-hour SMA from below.
The bullish crossover opens the door for a further rally, with attention focused on the $ 1,850 level, the previous support that was held for a long time now turns into a powerful resistance.
The RSI has turned down but is still holding well above the 50 level, currently 64, allowing for more gains.
Meanwhile, immediate support is at the bullish 21-hour SMA at $ 1,827, below which support at $ 1,815 could be tested.
Gold 1 hour chart
Gold technical levels
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