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Gold set for first weekly gain in three on weakening dollar

 

·         Gold on Friday held near a more than one-month peak scaled in the previous session, with bullion set for a weekly gain of over 1%, as a weakness in the dollar and Treasury yields offered support along with a surprise jump in U.S. jobless claims.

 

·         Fundamentals

Spot gold was steady at $1,755.91 per ounce by 0151 GMT, having hit a high since March 1 at $1,758.45 an ounce on Thursday.

 

·         The metal has gained nearly 1.5% for the week so far, after posting losses in the previous two weeks.

 

·         However, U.S. gold futures fell 0.1% on Friday to $1,756.20 per ounce.

 

·         The U.S. dollar fell to a two-week low against a basket of currencies after the number of Americans filing new unemployment claims increased for the second straight week, last week.

 

·         U.S. Treasury yields fell on Thursday, pressured by fresh dovish comments from Federal Reserve Chair Jerome Powell.

 

·         Powell noted that an expected rise in prices this year is likely to be temporary, and warned that an uptick in COVID-19 cases could slow the recovery.

 

·         The U.S. central bank intends to maintain its ultra-easy stance even though data suggest the economy revving up.

 

·         The European Central Bank policymakers discussed a smaller rise in bond purchases, according to meeting accounts.

 

·         U.S. Treasury Secretary Janet Yellen on Thursday encouraged major economies to add substantial new fiscal stimulus to ensure a robust recovery.

·         Gold Price Prediction: XAU/USD Completes 50% Fibonacci Retracement, Quick Sell Signal!

 

·         Gold Price Futures (GC) Technical Analysis – Sustained Move Under $1746.90 Targets $1718.40 – $1711.90

 

 

Daily Swing Chart Technical Forecast

The direction of the June Comex gold market on Friday is likely to be determined by trader reaction to the 50% level at $1746.90.

 

Bearish Scenario

A sustained move under $1746.90 will indicate the presence of sellers. If this move creates enough downside momentum then look for a potential break into the support cluster at $1718.40 to $1711.90.

 

Bullish Scenario

A sustained move over $1746.90 will signal the presence of buyers. If this generates enough upside momentum then look for the rally to possibly extend into $1759.40, followed by the 50% level at $1767.60. The latter is a potential trigger point for an acceleration into $1788.50.

·         Silver stood unchanged at $25.45 and was set for biggest weekly gain in four.

 

·         Palladium was down 0.2% to $2,618.51. Platinum fell 0.3% to $1,225.95 but was set for its second straight weekly gain.

 

Reference: CNBC, FXLeader, FXEmpire