Gold price holds its recent range after testing the $1,900 mark on Tuesday. In the view of FXStreet’s Dhwani Mehta, XAU/USD appears ‘buy the dips’ trade.
Sellers need a daily closing below 21DMA at $1,907 to extend the correction
“The bright metal dropped sharply to the $1,900 threshold on Tuesday but staged a solid comeback thereafter. This suggests that Gold price remains a ‘buy the dips’ trade from a short-term technical perspective.”
“On the upside, Gold buyers need to find acceptance above the $1,935 hurdle to negate the recent downbeat mood. Further up, the move higher could challenge the $1,950 psychological level before attacking the $1,960 supply zone.”
“Gold sellers need a daily closing below the bullish 21-Daily Moving Average (DMA) at $1,907 to extend the correction from nine-month highs of $1,949. The last line of defense for Gold buyers stands at the $1,900 level, below which floors will open up toward the January 11 low of $1,867.”