Gold Price Forecast: Bulls add pressure, break above 1,800 on the cards
XAU/USD Current price: $1,785.98
- US Treasury yields jumped to multi-month highs but retreated after Wall Street’s opening.
- Solid earnings reports from big US names boosted the market’s sentiment.
- XAU/USD is technically bullish and poised to break above its October high.
Gold keeps trading within familiar levels, currently at around $1,783.80 a troy ounce, up on a daily basis. A better market mood plays against the greenback. Wall Street trades at record highs following solid earnings reports from big names, which partially offsets growth-related concerns.
The greenback enjoyed from some temporal demand, as the yield on the 10-year Treasury note surged to 1.673%, its highest since May, but both retreated after the American opening, with such a yield currently at around 1.63%, unchanged from Tuesday’s close. Gold trades near a fresh weekly high of $1,788.39 a troy ounce.
Gold price short-term technical outlook
XAU/USD has posted a third consecutive high on a daily basis, a sign of mounting buying pressure. The bright metal has extended its recovery from around the 50% retracement of the 1,721.59/1.800.58 rally and is now trading above the 23.6% retracement at 1,781.85. The daily chart shows that gold trades above a directionless 20 SMA, while below the 100 and 200 SMAs, as technical indicators hold within positive levels although with uneven strength. Nevertheless, the risk is skewed to the upside, aiming for a retest of the top of the range.
In the near term, and according to the 4-hour chart, gold is bullish and poised to extend its advance. It is currently developing well above all of its moving averages, as technical indicators head firmly north within positive levels. Beyond its recent high, the next relevant resistance level is 1,808.63, September 14 daily high.
Support levels: 1,781.85 1,7770.40 1,761.00
Resistance levels: 1,790.60 1,800.60 1,808.60
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Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
