Gold reached fresh multi-month highs near $1,880 on Tuesday but lost its traction during the American trading hours. XAU/USD is currently fluctuating in a tight range above $1,850 and points to a fresh upswing towards $1,900, in the view of FXStreet’s Dhwani Mehta.

Bull cross confirmation on daily sticks points to a fresh uptrend in the making

“Gold has managed to find strong bids at $1,850, now heading back towards the recent strong resistance at $1,870. If the recovery momentum sustains above the latter, then the June 14 tops of $1,878 will get tested once again. The next relevant upside target is then seen at the $1,900 psychological level.”

“The 100-Daily Moving Average (DMA) has pierced through the 200-DMA from below, representing a bull cross, adding credence to the renewed optimism.”

“Should gold bears fight back control the price could breach the $1,850 demand area, below which the November 11 lows of $1,843 could be back in play. Further south, the previous critical resistance now support at $1,834 will be the level to beat for gold bears.”

See – Gold Price Forecast: XAU/USD to face initial hurdle at $1,917/22 on its way to August 2020 peak at $2,072 – Commerzbank