Gold Price Forecast: XAU/USD refreshes seven-month highs above $1,860 amid falling yields

Gold price hits fresh seven-month highs above $1,860 in European trading.
The US Treasury yields decline, risk-on mood smash the US Dollar.
Sell-off in the US Treasury yields cap the downside in the Gold price.

Dhwani Mehta FXStreet

Gold price is holding close to the highest level in seven months above $1,860 in the Europen session, accelerating the upbeat momentum, as the US Dollar tumbled across the board following a hot start to 2023.

The US Dollar remains under heavy selling pressure, as the European equities opened higher. Further, the sell-off in the US Treasury bond yields gathered steam and exacerbated the pain in the greenback, allowing the non-yielding Gold price to extend its uptrend into the fourth straight session.

Markets continue to adjust their positions in the first week of this year, gearing up for the first top-tier US economic events release due later this Wednesday. The US ISM Manufacturing PMI and the US Federal Reserve (Fed) Minutes will be closely scrutinized for the Fed’s future policy path, which will significantly influence the US Dollar and the USD-sensitive yellow metal.

The fresh upsurge in the Gold price could be also attributed to the big technical breakout on the daily chart. Gold price confirmed an upside from the ascending triangle on Tuesday. The price closed Tuesday above the horizontal trendline (triangle) resistance at $1,825.

Gold price: Daily chart

Gold price: Technical level to watch

XAU/USD

Overview
Today last price	1860.88
Today Daily Change	22.69
Today Daily Change %	1.23
Today daily open	1838.16

Trends
Daily SMA20	1803.06
Daily SMA50	1757.02
Daily SMA100	1724.08
Daily SMA200	1779.26

Levels
Previous Daily High	1850.03
Previous Daily Low	1824.7
Previous Weekly High	1833.38
Previous Weekly Low	1797.11
Previous Monthly High	1833.38
Previous Monthly Low	1765.89
Daily Fibonacci 38.2%	1840.35
Daily Fibonacci 61.8%	1834.38
Daily Pivot Point S1	1825.23
Daily Pivot Point S2	1812.3
Daily Pivot Point S3	1799.9
Daily Pivot Point R1	1850.56
Daily Pivot Point R2	1862.96
Daily Pivot Point R3	1875.89

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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