Gold Price News and Forecast: XAU/USD pulled back to $1700 and quickly bound back, hitting fresh highs
|Gold Price Analysis: Despite the move back above $1700 the outlook is bearish in medium term
The price of gold has pushed higher today as the greenback capitulated once again. Although stocks have moved higher too this time. There has been another liquidity dump in the system by the ECB as today they announce an additional EUR 600bln.
The structure of the gold chart is not as bullish as most of the indices but it is defiantly not as bearish as the dollar index. This leaves the precious metal in somewhat of a conundrum. The equity markets have seen a rotation into the stocks that fell the most during the COVID-19 pandemic (banks and airlines) and yields are starting to rise once again in the fixed income space.
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Gold Price Analysis: XAU/USD rebounds from $1700 and breaks above $1720
Gold printed fresh daily highs after a short-lived correction to $1700 following the beginning of the American session. XAU/USD trades at $1722, the highest since Wednesday’s European session.
The precious metal is rising after falling during two consecutive days. It found support again above $1690 that has become a critical barrier. A firm break below should clear the way to more losses.
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