Gold Price Analysis: XAU/USD set to rally past $1800 fueled by falling yields
Gold bulls took a breather above $1790 as the yellow metal awaits a strong catalyst to break through the key $1800 barrier. As FXStreet’s Dhwani Mehta notes, falling Treasury yields and DXY remain a key driver for gold’s upside.
A test of rising wedge hurdle at $1802 on the 4H chart is likely
“The sell-off in the Treasury yields could deepen if the market mood worsens on a likely cautious outlook on the economy from the European Central Bank (ECB). The ECB is widely expected to maintain its current monetary policy settings when they meet later in the European session today.”
“The dovish Fed expectations could continue to offer support to the non-interest-bearing gold, as the focus also remains on the US weekly Jobless Claims for fresh incentives.”
“Gold remains on the track to test that key barrier, now seen at $1802.”
“Gold buyers remain hopeful so long as the price holds above the 21-simple moving average (SMA) support at $1781. A sustained move below the latter could expose the confluence zone of the wedge support and ascending 50-SMA at $1763.”
“A four-hourly candlestick close above $1802 could open the gates towards the horizontal (orange) trendline resistance at $1816. Ahead of that target, the 100-day SMA at $1804 could test the bullish commitments.”
Reference: FXStreet
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