Gold Price Analysis: XAU/USD bulls attack $1,800 key hurdle amid risk-on mood

• Gold wavers inside a range after rising the most in 13 days, poking February 25 high the previous day.
• US ISM Manufacturing PMI, upbeat vaccine news and Fed’s Powell favor market optimism amid off in China, Japan.
• Virus updates, US Factory Orders and month-start positioning should be watched for fresh impulse.

Gold consolidates the heaviest run-up since mid-April inside an $8 trading range below $1,800 round figure, picking up bids around $1,793 during the initial Asian session on Tuesday. While risk-on mood offered upbeat month-start to the bright metal traders, the key hurdle around $1798–1800 seems to test the buyers of late.

Battleground for bulls…

Despite off in China and Japan, as well as a light calendar except for the US ISM Manufacturing PMI, gold prices managed to rise heavily the previous day as market sentiment cheered US catalysts. Although the US ISM Manufacturing PMI for April eased from 64.7 prior to 60.7, versus 65.0 market consensus, all 18 industry components of the gauge jumped for the first time since 2014.

Also on the risk-positive side were comments from Federal Reserve (Fed) Chairman Jerome Powell and New York Fed President John Williams brightened the mood as both praised the US economic recovery. Further, news that some parts of India witness fading rally in the covid cases and the New York Times (NYT) news conveying the US Food and Drug Administration’s (FDA) plan to back Pfizer-BioNTech Covid-19 vaccine for 12-15 years old favored the upbeat sentiment.

Amid these plays, Wall Street closed mixed and US 10-year Treasury yields on the first day of May but S&P 500 Futures search for fresh clues by the press time.

Moving on, global ire towards China and Iran may offer extra directives to gold prices while Aussie data and the RBA could entertain traders. However, major attention will be given to the covid developments for immediate moves in Asia. It should be noted that off in China and Japan may restrict market moves.

Technical analysis

While $1,798 guards the quote’s immediate upside, a clear upside beyond the 100-day SMA level near $1,799 and the $1,800 threshold become necessary for gold buyers to keep the reins.