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Gold Eyes Up the 2000 USD Barrier As Bulls Take Control of the Market in May

June 1, 2021

Gold keeps a firm hold and is consolidating under an almost new three-month high at 1912 USD in yesterday’s trading sessions, supported by a weak dollar and growing inflationary pressures lifting gold’s appeal as the metal to be used as a safe haven against inflation concerns.

Another supporting factor for the precious metal is the monetary policy, as it continues to remain relaxed and not willing to start changing the policy in response to rising inflation, suggesting that the latest increase in consumer prices is transitory.

Gold is on course for its second consecutive bullish monthly close as it climbed nearly 8% in May and it is also on track for the largest monthly gains since last July.

The psychological barrier at 2000 USD is coming into view with several experts, analysts and investors believing in the potential for even further gains.

May’s huge bullish monthly candle is anticipated to underpin additional upward momentum, however, this will face challenges from the next target at 1922 USD and we could see a pullback as gold moves heavily into the overbought zone. However, these pullbacks are expected to give additional opportunities for bulls to re-enter the price action and with a broken weekly cloud top at 1877 USD offering a new level of support. 

 

XAU/USD Daily Chart:

Key levels to keep an eye on:

Resistance: 1912; 1922; 1959; 1980.

Support: 1900; 1887; 1875; 1855.

 

 

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