Gold Price Analysis: XAU/USD eyes multi-year highs amid bullish technical set up

• Gold eyes $1818.17 and beyond going forward.
• Dollar weakness amid risk-on mood boosts XAU bulls.
• Technical set up suggests additional upside.

Gold (XAU/USD) caught a fresh bid-wave and hit the highest levels in four days at $1815.10 in the last hour, helped by a fresh leg lower in the US dollar across the board amid the risk-on market mood.

The European traders cheered the optimism over Moderna’s coronavirus vaccine while the US-China escalation also offered fresh impetus to the gold bulls.

From a near-term technical perspective as well, gold remains poised for further upside, especially after it managed to reverse a quick dip below the 21-hourly Simple Moving Average (HMA), then placed at $1806.13.

The bulls also cleared the stiff horizontal barrier placed at $1813 while they now target the eight-year highs at $1818.17. Further north, the round figure of $1820 could be put to test. The hourly Relative Strength Index trades at 61 levels, suggesting more room for upside.

Meanwhile, the bullish bias will likely remain intact in the near-term as long as the spot holds above the upward sloping 21-HMA, now seen at $1808.78.

On an hourly closing below the latter, strong support around $1805 will be back in play. That level is the confluence of the 50 and 100-HMAs.

Gold: Hourly chart

Gold: Additional levels to consider