- XAU / USD bulls see further gains amid optimism for US stimulus.
- The bullish flag and a bullish RSI on the 15-minute chart favor buyers.
- The focus is on Biden’s stimulus talks and silver price action.
Gold (XAU / USD) is poised to retest the daily highs near $ 1,870, having found strong buying around the $ 1,850 level amid reviving hopes of a likely US fiscal stimulus. .
Risk appetite sentiment has received further impetus and has propelled gold prices as the safe-haven US dollar has moved lower across the board after news that the president is expected to Joe Biden meets with a group of Republican senators later Monday to discuss the COVID relief package.
The Wall Street retail investor frenzy and the current rally in silver prices also keep gold sentiment propped up. Although, optimism about vaccines in the euro zone could limit further gains in the yellow metal.
Looking at it technically, the short-term bias looks bullish amid a confirmed bullish flag on the 15-minute chart.
The RSI is stable above the midline, which suggests there is additional room to the upside.
XAU / USD is trading above all major moving averages on this time frame, having witnessed a bullish crossover early in the Asian session. The 21-period simple moving average has cut higher to the 50 SMA, representing a bullish crossover.
A break below the downtrend line support at $ 1,858 could invalidate the pattern, opening the doors for a test of the SMA 50 at $ 1,855.
15 minute chart gold
Gold additional levels
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