Gold eyes first double-digit monthly price gain since February 2016


  • Gold is on track to print double-digit monthly gains.
  • The metal has rallied on the back of dollar weakness and negative real yields. 

Gold is currently trading at $1,970 per ounce, representing a 10.5% gain on a month-to-date basis, having hit a record high of $1,981 on Tuesday. 

If these gains are held through Friday’s NY close, the resulting double-digit monthly gain would be the first since February 2016. 

The rally could be attributed to the dollar sell-off and negative yields on the US Treasury inflation-protected securities (TIPS). The dollar index fell to a 26-month low of early Friday, taking the month-to-date decline to 4.86%. Meanwhile, the 10-year real or TIPS yield fell to a record low of -0.90% earlier this week. 

Looking forward, gold could continue to gain altitude as the Fed is unlikely to normalize its easy policy anytime soon and the dollar is likely to remain under pressure due to renewed concerns regarding the future course of the world’s largest economy. 

Technical levels

XAU/USD

Overview
Today last price 1970.04
Today Daily Change 13.49
Today Daily Change % 0.69
Today daily open 1956.55
 
Trends
Daily SMA20 1847.39
Daily SMA50 1780.35
Daily SMA100 1720.31
Daily SMA200 1627.33
 
Levels
Previous Daily High 1971.82
Previous Daily Low 1939.66
Previous Weekly High 1906.68
Previous Weekly Low 1805.86
Previous Monthly High 1785.91
Previous Monthly Low 1670.76
Daily Fibonacci 38.2% 1951.95
Daily Fibonacci 61.8% 1959.53
Daily Pivot Point S1 1940.2
Daily Pivot Point S2 1923.85
Daily Pivot Point S3 1908.04
Daily Pivot Point R1 1972.36
Daily Pivot Point R2 1988.17
Daily Pivot Point R3 2004.52

 

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