Gold Price Forecast: XAU/USD accelerates above $1770, turns positive for the week
- US dollar tumbles across the board and boosts XAU/USD.
- Gold up a hundred dollars from Monday’s low.
Gold prices are up by more than 1% on Friday, boosted by lower US yields and a weaker greenback. XAU/USD trades at $1774, the highest level in a week.
University of Michigan’s Consumer Confidence report showed a sharp, unexpected decline to 70.2 in the main index, the lowest level since 2011. The numbers added fuel to the decline of the greenback across the board. The DXY is falling 0.50%, having the worst day in weeks. US yields tumbled after the latest economic numbers. The 10-year yield dropped to 1.30%, the lowest since Monday.
The combination of a weaker dollar and the rally in Treasuries pressured gold prices further to the upside. XAU/USD erased weekly losses and is in positive territory after a reversal of a $100 from the Monday flash crash low.
The weekly chart now offers a positive perspective for gold after the rebound from the key support at $1675. A close above $1760 would keep the door open to an extension of the current rally. The next strong barrier is seen at $1795.
Technical levels
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.
