Gold prices rose on Thursday as a weaker dollar boosted the safe-haven metal’s appeal, while investors awaited the release of weekly jobless claims and March retail sales data in the United States later in the day.
Spot gold rose 0.2% to $1,738.96 per ounce by 0121 GMT. U.S. gold futures were up 0.1% to $1,737.90 per ounce.
· Gold Price Analysis: XAU/USD looks to retest $1750 as USD bounce fizzles ahead of US Retail Sales
Gold: Technical outlook
Gold is on the verge of confirming a symmetrical triangle breakout on the hourly chart should the price close the candlestick above the falling trendline resistance at $1743.
If the upside break materializes, XAU bulls could attempt another run to recapture the $1750 psychological level, above which the horizontal trendline (orange) resistance at $1758 could be tested.
The Relative Strength Index (RSI) backs the case for additional upside, given that it points north at 58.84, as of writing.
However, if the bears manage to fight back control, the metal could fall back towards a critical confluence support area at $1739, comprising of the downward-sloping 100, 50 and 200-hourly moving averages (HMA).
The next relevant cap is seen at the rising trendline (triangle) support, currently at $1736.
A sustained break below the latter could trigger a triangle breakdown, opening floors for a test of the April 13 low of $1724.
· Belarus' gold, forex reserves expected to exceed $6bn by 2021 year-end
· Silver rose 0.5% to $25.53
· Palladium was up 0.3% at $2,683.51
· Platinum gained 0.5% to $1,176.05.
· Dollar dips to four-week low as yields pull back; rouble sinks
The U.S. dollar sank to a four-week low against other major currencies on Thursday as Treasury yields pulled back from last month’s surge, with investors increasingly convinced the Federal Reserve will keep interest rates low for some time.
The Russian rouble sank more than 1% to 76.65 per dollar on reports the U.S. will announce sanctions on Russia as soon as Thursday for alleged election interference and malicious cyber activity.
The dollar index, which tracks the it against six other currencies, dipped to its lowest since March 18 at 91.535 in the European session before recovering to be basically flat at 91.590.
The euro rose as high as a four-week top of $1.1990, matching the highest level since March 4, before trading little changed at $1.19735.
The dollar changed hands at 108.87 yen, after hitting a three-week low of 108.755 on Wednesday.
· Treasury yields drift lower ahead of jobless claims and retail sales data
Ten-year U.S. bond yields eased to 1.6165% in European trade.
· Thursday is busy with U.S. data, including retail sales readings for March and weekly jobless figures due at 1230GMT.
· Bitcoin stood near the record high of $64,895.22 reached on Wednesday, when cryptocurrency platform Coinbase made its debut in Nasdaq in a direct listing. The world’s most popular digital token last changed hands around $63,250.
Reference: CNBC, Reuters, Belta, FXStreet
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