XAU/USD Outlook: Gold Surges above $1800 on Weaker Dollar and Rising Inflation Expectations

Technical analysis of Forex market

Spot gold surged to the highest levels in 1 –1/2 months on Friday, lifted by a weaker dollar and a pick-up in inflation expectations, while the rally accelerated after taking out barriers at $1791/93 (Fibo 61.8% of $1834/$1721/200DMA) and psychological $1800 level, triggering stops parked above.

The yellow metal advanced nearly 1.5% so far and is on track for the second consecutive weekly gain.

A weekly close above $1800 level would add to bullish signals which look for confirmation on close above cracked Fibo 76.4% barrier that would open way towards key barriers at $1834 zone (l July/Sep lower platform). Daily techs turned to a full bullish setup and support the action, which needs to hold above the broken $1800 level to keep bulls in play.

Res: 1812; 1823; 1827; 1834.
Sup: 1807; 1800; 1794; 1791.