Gold price is reversing slightly from one-week highs of $1,821 reached on Tuesday. XAU/USD needs a ‘Santa rally’ to extend the upside toward $1,830, FXStreet’s Dhwani Mehta reports.

Santa rally could down USD on weak US data

“The extended risk rally, the ‘Santa rally’, could weigh negatively for the safe-haven USD, providing traction to Gold for the further upside. That could materialize if the United States Conference Board Consumer Confidence and Existing Homes Sales data disappoint and revive the narrative of a dovish Fed pivot in 2023.”

“Gold needs to recapture the previous high of $1,821 to challenge the multi-month top at $1,825. Acceptance above the latter will initiate a fresh upswing toward the $1,830 round figure.”

“However, if Gold bulls fail to take out the $1,825 resistance, then the December 14 high of $1,814 could be tested. Also, the $1,800 threshold will offer strong support to Gold buyers should the retracement gather traction.”