Gold Price Analysis: XAU/USD to target $1,800 with a daily close above $1,785
|Gold registered its largest weekly gain of 2021. In the view of FXStreet’s Eren Sengezer, XAU/USD could target $1,800 if US T-bond yields push lower.
Gold continues to react to movements in US Treasury bond yields
“On Tuesday, the labour market report from the UK will be looked upon for fresh catalysts. Although this event is unlikely to have a direct impact on gold’s valuation, a sharp movement in the GBP/USD pair could drive the USD’s overall market performance.”
“On Thursday, the European Central Bank will announce its Interest Rate Decision and release the Monetary Policy Statement. Investors are not expecting any changes to policy but the bank could provide forward guidance with regards to changes in asset purchases. A dovish policy outlook is likely to weigh on the shared currency and ramp up the demand for the USD.”
“Finally, the IHS Markit will release the preliminary April Manufacturing and Services PMI reports for the euro area, Germany, the UK and the US. Market participants are likely to ignore the headline figure and focus on the underlying details that can reveal fresh insights with respect to input price constraints. Meanwhile, investors will continue to keep a close eye on yields.”
“A daily close above $1,785 (Fibonacci 38.2% retracement of the January-March downtrend) could open the door for additional gains toward $1,800 (psychological level) and $1,805 (100-day SMA).”
“The initial support is located at $1,755 (static level, 50-day SMA) ahead of $1,745 (former resistance) and $1,735 (20-day SMA). At the current technical setup, only a daily close below $1,755 could be seen as an attractive development for sellers.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.