Breaking: Gold surges above $1,800, highest since February as US yields remain pressured
Gold has extended its gains and has finally broken above the psychological barrier of $1,800. XAU/USD bulls had previously been rejected at this level. The precious metal has been extending its gains in what looks like a convincing breakout.
Falling US Treasury yields have been one of the reasons underpinning the latest moves. Returns on 10-year Treasuries dropped below 1.60% and were hovering around 1.57% at the time of the upside move. As gold has no yield, it competes with the benchmark of safe returns – Uncle Sam's debt.
Another technical look, from FXStreet's Eren Sengezer
The Relative Strength Index (RSI) indicator on the daily chart is inching higher on Thursday. However, gold may need to make a daily close above $1,800, where the 100-day SMA is currently located, in order to attract buyers. Above that level, $1,820 (Fibonacci 50% retracement of the January-March downtrend) aligns as the next target ahead of $1,840 (static level).
Full Analysis: Gold Price Forecast: XAU/USD to post additional gains with daily close above $1,800
Here is how the latest move looks on the XAU/USD four-hour chart. Gold has been trending higher after making a second, more decisive move above downtrend resistance while leaving the 50 Simple Moving Average behind it. Momentum remains to the upside and the Relative Strength Index (RSI) is still under 70 at the time of writing – thus outside overbought conditions.
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Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
