XAUUSD Technical Analysis – May 17, 2021

Gold rose on Friday and the technical bias is bullish due to higher highs in the recent uptrend.

Gold is currently trading near 1844.500, and multiple resistance levels can be found above, which may prevent the price from rising further.

  • Resistance level 1: 1855.000
  • Resistance level 2: 1865.000
  • Resistance level 3: 1875.000

Below the price, multiple support levels can be seen, and the price may be maintained above this level.

  • Support level 1: 1840.000
  • Support level 2: 1835.500
  • Support level 3: 1828.500

Investors should pay attention to the minutes of the last interest rate resolution announced by the Federal Reserve Open Market Committee (FOMC) on Wednesday. The Hawkish view of monetary policy will have a boost to the dollar, and it will be detrimental to gold, and vice versa. At the same time, it should be noted that the latest US inflation data released last week showed that the inflation rate has rose higher than expected. Whether this will affect the Fed’s next actions and arrangements requires further observation.

The current market performance: USD has experienced a wave of rise that was caused by the release of inflation data, and a fall. It seems that the market generally accepts the fact that the Fed will not change its established course and stance on the rise of inflation data.

Given the current price trends and economic development, it may be a good choice to buy gold near the current level.