16.10 - Gold Price Analysis
- by George Solotarov
Renewed hopes of a potential US fiscal stimulus deal, helped Gold (XAU/USD) clinched two straight days of gains, as the XAU bulls remained hopeful of new funds to lift the prices northwards. President Donald Trump’s offer of $1.8 trillion in fiscal aid on Thursday helped narrow Wall Street losses and stall the US dollar rally.
Despite the market optimism, gold struggles to extend the advance above $1900, as investors turn cautious ahead of the critical US Retail Sales and Michigan Consumer Sentiment data due later on Friday. The Technical Confluences Indicator shows that the yellow metal is stuck in a narrow range so far this Friday, now confronting the immediate upside barrier at $1910. The next significant resistance is seen at $1912.50. Only a sustained move above the latter could revive the bullish momentum, as the buyers aim for $1917. On the flip side, a move below the dense cluster of support levels around $1904/02 would trigger a fresh leg down in the spot.