Gold Price News and Forecast: XAU/USD teases pennant breakout
|Gold Price Analysis: Snaps two-day winning streak, still above $1,700, as DXY regains
Gold prices remain mildly offered around $1.714, down 0.10% on a day, during the Asian session on Thursday. The bullion recently snapped two-day winning streak as the US dollar recovers initial losses to extend the previous day’s gains.
The greenback seems to gain fresh bids from the downbeat signals from Australia and New Zealand while also cheering the increasing odds of the People’s Bank of China’s (PBOC) rate cut. The USD earlier stepped back after comments from US President Donald Trump and Treasury Secretary Steve Mnuchin rekindled hopes of negative Fed rate. It’s worth mentioning that the Federal Reserve policymakers, including Chairman Powell, tried hard to rule out any such odds the previous day.
Gold Price Analysis: Yellow metal teases pennant breakout
Gold is currently hovering near $1,1718, which is the upper end of the one-month-long contracting triangle, popularly known as pennant pattern. Acceptance above that level would confirm a pennant breakout. That would imply a continuation of the rally from the March 20 low of $1,455 and open the doors to a re-test of the April 14 high of $1,747. On the way higher, the lower high of $1,739 created on April 23 could offer some resistance.
Alternatively, a downside break of the pennant pattern would confirm a bullish-to-bearish trend change and expose the 50-day average at $1,651. A violation there would shift the focus to $1,614 (100-day average) and $1,600.
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