Gold price retreats from above $1,900 on hopes for diplomacy. Still, XAU/USD remains a ‘buy the dip’ trade, FXStreet’s Dhwani Mehta reports.

Impending bull cross on the daily chart suggests ‘buy the dip’ trade 

“XAU/USD is off the multi-month high level at $1,903 but remains in its close proximity, with a buying resurgence likely to retest the same. Gold bulls will then look out for the June 1 high of $1,917. The next bullish target is envisioned at $1,950, the psychological barrier.”

“Adding credence to a potential move higher, the 100-Daily Moving Average (DMA) is on the verge of crossing the 200-DMA for the upside, which if materializes, will confirm a bull cross.”

“If the retracement picks up pace, then the round level of $1,890 will be put to test initially. The additional declines will call for a test of Tuesday’s high of $1,880, below which the $1,850 support area will be back on sellers’ radars.”

See – Gold Price Forecast: XAU/USD to reach $1,950 by end-2022 in Fed becomes dovish – UBS