Gold Price Forecast: XAU/USD hits fresh weekly highs above $1,820
|- US Dollar weakens during the American session as market sentiment improves.
- Gold rises further despite higher US yields.
- XAU/USD with bullish bias, looking at monthly highs around $1,825.
Gold prices broke above $1,810 and jumped to $1,821 reaching the highest level in a week. XAU/USD remains around $1,1815 looking at the monthly high amid an improvement in market sentiment and despite higher US yields.
Equity prices in Wall Street accelerated to the upside during the last hours after opening in negative ground. The Dow Jones is up by 0.50% and the Nasdaq gains by 0.42%. US yields are off highs but still up for the day. The US 10-year bond yield rose to 3.70%, the highest level since November. Also European yields are up, boosted by the Bank of Japan (BoJ) surprise.
The BoJ widened the band of its yield curve control and triggered a selloff in bond around the globe. Gold prices held relatively steady and then started to rise on European hours. After the beginning of the American session, XAU/USD rose even further.
Short-term outlook
Gold prices are now looking at the monthly high around $1,825. A break higher would expose the next resistance area $1,830. The outlook is bullish for gold, however a slide back below $1,810 should keep XAU/USD in the wide range with support at the 20-day Simple Moving Average at $1,780.
A daily close around current levels would be the strongest since late June. On the downside, a daily close under $1,765 could suggest a near term peak.
Technical levels
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