Gold Surges Above $2,060 as U.S. Bond Yields Push Lower
The price of gold continues its daily upward trend, reaching new highs in weeks, surpassing $2,060. The 10-year U.S. Treasury bond yield remains in negative territory below 3.9% following soft U.S. PCE inflation data. This allows XAU/USD to gather momentum for further price increases.
From a technical standpoint, breaking through the $2,047-$2,048 resistance, representing the weekly trading range's highest point, supports bullish trading sentiments. Additionally, the appearance of a golden cross, where the 50-day Simple Moving Average (SMA) crosses above the 200-day SMA, further bolsters the prospects of an upward movement. The constructive outlook is reinforced by the fact that daily chart oscillations are holding in positive territory. Therefore, the next potential move aims to test the next relevant resistance around the $2,072-$2,073 range, suggesting a distinct possibility for gold prices to target the $2,100 mark.
On the flip side, any meaningful pullback is likely to find strong support, attracting new buyers near the $2,028-$2,027 range. This support is expected to limit the downside of XAU/USD, preventing it from falling below the $2,017 horizontal level. However, a convincing break below this level may trigger technical selling pressure, potentially exposing gold prices to a rapid decline towards the psychological $2,000 level. This scenario is closely monitored by the 50-day SMA, currently around $1,994, below which the downtrend trajectory may extend further towards last week's low around $1,973, en route to the significant 200-day SMA near $1,958.
From a technical standpoint, breaking through the $2,047-$2,048 resistance, representing the weekly trading range's highest point, supports bullish trading sentiments. Additionally, the appearance of a golden cross, where the 50-day Simple Moving Average (SMA) crosses above the 200-day SMA, further bolsters the prospects of an upward movement. The constructive outlook is reinforced by the fact that daily chart oscillations are holding in positive territory. Therefore, the next potential move aims to test the next relevant resistance around the $2,072-$2,073 range, suggesting a distinct possibility for gold prices to target the $2,100 mark.
On the flip side, any meaningful pullback is likely to find strong support, attracting new buyers near the $2,028-$2,027 range. This support is expected to limit the downside of XAU/USD, preventing it from falling below the $2,017 horizontal level. However, a convincing break below this level may trigger technical selling pressure, potentially exposing gold prices to a rapid decline towards the psychological $2,000 level. This scenario is closely monitored by the 50-day SMA, currently around $1,994, below which the downtrend trajectory may extend further towards last week's low around $1,973, en route to the significant 200-day SMA near $1,958.
