Gold Price Forecast: XAU/USD rises on the back of falling US Treasury yields, weaker USD
|- The XAU/USD currently stands at $2,035 up by 0.52%.
- Bulls show signs of recovery after two sessions of losses favored by a weaker US Dollar.
- On the hourly chart, indicator readings are pausing their advance to consolidate gains.
- Bulls still control the daily chart as buyers recovered the 20-day SMA.
In Tuesday's session, the XAU/USD surged to $2,035, reaffirming its bullish scenario in the daily chart. Despite central banks evading sooner rate cuts, bulls still show dominance favored by lower US Treasury yields, often seen as the cost of holding non-yielding metals. On the hourly outlook seems under strain as investors consolidate gains, leading to a loss in momentum as indicated by weakened technical indicators.
Looking at the signals on the daily chart, the bull's strength prevails. This bullish sentiment is supported by the positive upslope of the Relative Strength Index (RSI) and the increasing green histogram bars of the Moving Average Convergence Divergence (MACD), both suggesting a strong buying momentum. Besides, the price is trading above its 20, 100, 200-day Simple Moving Averages (SMAs), underlining the dominance of buyers in the longer-term trend. In addition, as long as the buyers manage to hold above the 20-day average, the outlook will still be positive for the short-term.
Shifting focus to the hourly chart, the momentum seems to show some exhaustion as investors start to consolidate their gains.This indicates that in case no fundamental stimulus arises, the price may continue trading flat ahead of Wednesday's Asian session.
XAU/USD daily chart
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