Gold Price Analysis: XAU/USD's technicals suggest limited further upside ahead of Powell’s testimony

Gold is rising, with XAU/USD recapturing the $1,800 level. However, XAU/USD’s recovery appears limited ahead of Powell, according to FXStreet’s Dhwani Mehta.

See – Gold: Suggestions of tapering to put further pressure on XAU/USD – ING

Key quotes

“Powell is likely to reiterate his dovish stance, exerting additional downside pressure on the US dollar. Meanwhile, the market optimism-driven by encouraging vaccine developments could likely bode ill for the safe-haven gold. All in all, gold is likely to hold onto its recovery mode, awaiting fresh cues from the US CB Consumer Confidence data and Powell’s testimony.”

“The bulls could extend control towards the $1820 round number, above which the resistance at $1825 could be challenged.”

“The daily chart shows that the bearish 21-simple moving average (DMA) at $1821 could cap the recovery from seven-month tops, as the RSI turns flat below the midline.”

“Should the downside pressure regain momentum, a test of the November lows at $1765 would be back on the table. Also, the seven-month lows at $1761 could be at risk.”