Gold Price keeps defending the critical 21-Daily Moving Average (DMA) at $1,947. A weekly close above it is critical for XAU/USD buyers, FXStreet’s Dhwanie Mehta reports.

Retest of 50-DMA at $1,936 remains inevitable if downside momentum resumes

“If risk aversion deepens then a flight to safety theme will take over, which will revive XAUUSD’s safe-haven appeal. Also, concerns over elevated inflation will keep the demand for Gold Price alive as an inflation hedge.”

“Gold’s daily chart shows that bulls remain hopeful so long as the critical 21-DMA at $1,947 is defended.

“A retest of the ascending 50-DMA at $1,936 remains inevitable if the downside momentum resumes. The April lows of $1,915 will be the last line of defense for XAUUSD.”

“Gold bulls need to crack the key $1,960 resistance area to unleash a meaningful recovery. That level is the confluence of April 14 lows and the previous year’s high. Fresh buying opportunities will emerge above the latter, fuelling a fresh uptrend towards the $2,000 mark.”