Gold Price Forecast: XAUUSD needs to surpass 50 DMA to unleash the further upside toward $1,890

Gold set a new five-week top at $1,879 at the start of a new week on Monday. Bulls, however, have failed to hold at higher levels. The yellow metal needs to erode the 50 Daily Moving Average (DMA) to enjoy further gains, FXStreet’s Dhwani Mehta reports.

50 DMA could be a tough nut to crack

“A sustained move below the $1,860 demand area once again will call for a test of the $1,850 psychological level. The upward-pointing 21 DMA at $1,848 will be next on sellers’ radars.”

“XAU buyers need to find a strong foothold above the 50 DMA barrier to unleash the further upside towards the mildly bullish 100 DMA at $1,890. The next relevant upside target is pegged at $1,900, the round level.”

See – Gold Price Analysis: XAUUSD set to dive below the $1,800 level – TDS