Gold (XAU/USD) stays on the front foot, picks up bids to $1,780, as market players brace for Friday’s European session. In doing so, the yellow metal cheers the US dollar weakness, up 0.30% intraday and snapping the three-week downtrend, ahead of the key inflation figures. While the pre-data cautious sentiment could be spotted behind the greenback’s downbeat performance, the risk-on mood also cuts the USD’s safe-haven demand and adds gains to the gold prices. That said, the US dollar index (DXY), a gauge of the US currency versus the major six counterparts, snaps a two-day run-up with a 0.05% downside near 91.77 by the press time.
Gold prices battle a two-week-old falling resistance line after bouncing off short-term key horizontal support. In addition to the sustained bounce off two-month-old important support, bullish MACD signals an upward sloping MACD line also keep the gold buyers hopeful. However, a clear upside break of $1,781 becomes necessary for the bulls to refresh the weekly top with $1,797. Following that, May 13 low near $1,809 and the early May tops surrounding $1,845 could test the commodity’s upside moves. Though, gold bears remain hopeful until the quote stays below the 200-SMA level of $1,859. Meanwhile, a downside break of $1,7960 won’t be a big favor for gold sellers as they need to break the $1,756 support, comprising March top and late April low, to aim for multiple supports near $1,720. Overall, gold is up for a fresh rise but bulls await a clear break of immediate hurdles.