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·         Gold held steady near a more than one-month high on Friday, en route to its second straight weekly gain, boosted by a drop in U.S. Treasury yields and a weaker dollar.

 

·         Spot gold was up 0.1% at $1,764.13 per ounce by 0435 GMT, after hitting its highest since Feb.26 at $1769.37 on Thursday. Bullion is up more than 1% so far this week.

 

·         U.S. gold futures eased 0.1% to $1,764.40.

 

·         “We’ve seen that the 10-year yield has pulled back and has broken through that very important 1.6% level and I think that probably means that there is more weakness in yields, at least near term, which is very supportive for gold,” said DailyFX currency strategist Ilya Spivak.

 

·         Benchmark U.S. Treasury yields slipped to a one-month low, reducing the opportunity cost of holding non-interest bearing gold. The dollar headed for its worst back-to-back weekly drop this year.

 

·         Meanwhile, data showed China’s economy grew at a record pace in the first quarter, expanding 18.3% from a year earlier.

 

·         Recent economic readings from the United States and China have lifted hopes around a swift economic recovery and prompted investors to seek riskier assets.

 

·         Earlier this week, Federal Reserve Chair Jerome Powell and other Fed officials, said the brighter economic forecasts and a brief period of higher inflation will not affect monetary policy and the central bank will keep its support in place until the crisis is over.

 

·         “In the long run, some amount of inflation, due to the massive influx stimulus money, will keep gold supported,” said Stephen Innes, chief global market strategist at financial services firm Axi.

 

·         Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation.

 

·         Gold Price Analysis: XAU/USD consolidates in a range just below multi-week tops

Gold lacked any firm directional bias and seesawed between tepid gains/minor losses, around the $1,765 region during the Asian session on Friday.

From a technical perspective, the overnight move beyond a strong horizontal support breakpoint now turned resistance near the $1,760-65 region added credence to a bullish double-bottom formation near the $1,677-76 region. The set-up supports prospects for a further near-term appreciating move. Hence, any meaningful dip could now be seen as a buying opportunity and act as a tailwind for the XAU/USD amid a relatively thin US economic docket on Friday.

 

·         Gold bulls regain control

Gold – Silver

Gold Spot we wrote: holding above 1740 keeps the outlook positive re-targeting minor resistance at 1746/48. A break above 1750 meets strong resistance at1758/62. Shorts need stops above 1765.

We broke higher to 1769 – bulls need to hold prices above first support at 1760/57now.

Silver Spot beat resistance at 2560/70 but missed the next target of 2610/20 by 11pips.

Daily analysis

First support at 2555/45 could see a low for the day. Further strong support at2520/10 but longs need stops below 2505.

 

·         Silver slipped 0.1% to $25.83 per ounce. Palladium was steady at $2,740.18, but up about 4% for the week. Platinum gained 0.4% to $1,197.55.

 

Reference: CNBC, FXStreet