Gold Price Forecast: XAU/USD to see a pullback as a bull cross is in the making

XAU/USD tested $1,800 on Tuesday but ended up closing the day in the positive territory above $1,810. Gold awaits Fed minutes for the next directional move.

Impending bull cross on the daily sticks

“Traders mull the Fed’s rate hike prospects this year, prompting a pullback in the Treasury yields while keeping gold price afloat. Meanwhile, a cautious market, in the wake of covid concerns and Fed speculation, will likely keep bulls cheerful. However, the sentiment around the yields will continue to lead the way for gold price.”

“The 21-Daily Moving Average (DMA) is looking to cross the 200-DMA to the upside. If that materializes, then bulls could get the much-needed impetus to extend the recovery from the 200-DMA support, as a test of the $1,820 round figure remains on the table. Further up, the monthly high of $1,832 will be challenged once again.”

“To the south, immediate support is seen at the horizontal 50-DMA at $1,805, below which the confluence of the 21 and 200-DMAs at $1,800 will offer strong support to gold bulls. The next best safety net for gold optimists is envisioned at $1,793, the 100-DMA cap.”