The bearish grip is still intact on the yellow metal. As FXStreet’s Dhwani Mehta notes, risks remain skewed to the downside amid ebbing Omicron fears.

Risk-on mood at full steam amid easing Omicron fears

“The risk-on flows remain in vogue, as China continues to pledge support measures to stimulate economic growth while global scientists and experts downplay risks from the new covid variant. The Reserve Bank of Australia’s (RBA) patient policy stance also added to the market’s optimism.”

“The bears defied the Golden Cross confirmation, as the powerful resistance (confluence of the 50, 100 and 200-DMAs) around $1,792 continues to cap the upside attempts. A daily closing above the key confluence will expose the $1,800 barrier. The further recovery could call for a retest of Wednesday’s high at $1,809, above which the previous month’s high at $1,814 will put to test.”

“On the downside, Friday’s low at $1,766 could come to the rescue of gold bulls, below which the crucial support is seen at the horizontal trendline at $1,760. Further south, the $1,750 psychological level will challenge the bullish commitments.”

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