Gold Price News and Forecast: XAU/USD battle lines well-defined ahead of key US data
|Gold Price Analysis: Battle lines well-defined as XAU/USD awaits key US data – Confluence Detector
Gold (XAU/USD) is holding onto the overnight recovery gains, underpinned by dovish Fed Chair Powell and President-elect Biden’s $1.9 trillion stimulus plan. The sell-off in the US Treasury yields amid Fed’s dovish monetary policy prospects seems to bode well for the non-yielding gold.
Gold and silver defending key support levels
Following last week’s big sell-off, gold and silver have both managed to cling on to their respective key support levels as investors weigh conflicting macro factors. With the recent rebound in bond yields, the outlook on the metals have become a little uncertain, but I am still of the view that both will rise further over time. Precious metals should continue to receive tailwind support from the ongoing flood of cheap central bank money.
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