Gold Price Forecast: XAU/USD jumps to weekly highs near $1,975

Gold prices rise slide in Wall Street, supported by a decrease in government bond yields.
Following a brief pullback in response to the US Job Openings report, XAU/USD rebounded to weekly highs.

Matías Salord FXStreet

Gold prices are up for the second consecutive day on Wednesday, driven by lower government bond yields. The yellow metal reached its highest level in a week and is trading above $1,970.

Gold keeps shinning

After the opening bell on Wall Street, XAU/USD gained momentum and rose above $1,970. However, following the release of the US Job Openings report, it pulled back to $1,960, only to rebound later to $1,974, hitting a fresh weekly high.

US data released so far on Wednesday has been mixed. The JOLTS Job Openings came in at 10.10 million in April, against expectations of a decrease to 9.73 million. Meanwhile, the Chicago PMI showed a sharp decline in May from 48.6 to 40.4, against expectations of 47. These economic figures triggered market volatility. On Thursday, the ADP Employment report and the weekly Jobless Claims are due, while on Friday, the official Employment report will be released.

Although the US Dollar Index is up by 0.45%, it is not limiting Gold's gains. The key driver on Wednesday has been government bond yields. The 10-year Treasury yield is at 3.65%, the lowest in more than a week, while the German 10-year reference dropped to 2.24%, the lowest in two weeks. Market jitters and easing inflation in Europe are supporting the rally in bonds.

The short-term outlook for Gold looks positive while trading above $1,955, with resistance expected around $1,970. A clear consolidation above this level would keep the door open for further gains. The next strong resistance could be seen at the 20 and 55-day Simple Moving Averages, currently at $1,988.

Technical levels

XAU/USD

Overview
Today last price	1969.96
Today Daily Change	10.68
Today Daily Change %	0.55
Today daily open	1959.28

Trends
Daily SMA20	1991.79
Daily SMA50	1991.7
Daily SMA100	1936.74
Daily SMA200	1832.52

Levels
Previous Daily High	1963.56
Previous Daily Low	1932.12
Previous Weekly High	1985.3
Previous Weekly Low	1936.77
Previous Monthly High	2048.75
Previous Monthly Low	1949.83
Daily Fibonacci 38.2%	1951.55
Daily Fibonacci 61.8%	1944.13
Daily Pivot Point S1	1939.75
Daily Pivot Point S2	1920.21
Daily Pivot Point S3	1908.31
Daily Pivot Point R1	1971.19
Daily Pivot Point R2	1983.09
Daily Pivot Point R3	2002.63

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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