Gold is in recovery mode. Over the last two days, the metal has consolidated its price and is waiting for the next push up the index. Technicals are also favouring the bullish trend.
One of the major factors that helped gold improve its stance is the decline of the US Dollar and US Treasury yields, albeit the S&P500 futures are making gains. Bulls are all set to take optimum advantage of this situation and push the price further up. US stimulus news also helped gold to lift itself.
Considering the positive footing of gold, one may expect the yellow metal to make further gains in the near future. The next hurdle to be crossed is at the Fibonacci level around $1860.
However, this doesn’t mean it’s going to be a smooth run for gold prices in the coming days. Factors that may affect the good run include US housing numbers, Sino-American tussles, and the looming Delta variant threats.
Look at the chart above. It clearly shows gold price is in recovery mode. If the current uptrend continues, then the next resistance level would be 1831.86.