Gold Price Forecast: XAUUSD remains strong, still looking at $1770
- XAUUSD rebounds after hitting a fresh low at $1751.
- US yields erase earlier gains, back near recent lows.
- US dollar weakens during the American session.
Gold continues to shine as it shows the latest rebound. XAUUSD printed a fresh daily low during the American session at $1751, but only to rebound more than $10 in a few minutes, rising back above $1760. The outlook remains positive for the metal that is trading near the $1770 resistance area.
Technicals and yields
Gold is about to post the second weekly gain in a row, with the best performance in months. What it started as a correction, after falling to test the critical support around $1675, it has become a strong rally that could add to gains if the price holds above $1750.
The decline in US yields after the FOMC meeting triggered more gains in XAUUSD. Even after US economic data released on Friday showed a still strong consumer and high inflation, the demand for Treasuries held firm. The US 10-year yield stands at 2.65%, and the 30-year rate is back under 3.00%.
The greenback is still on positive ground on Friday but off highs and about to end the week on a weak note. The DXY is flat for the day, around 106.10, consolidating weekly losses. The long-term perspective is still bullish for DXY, but the momentum in the short-term has faded.
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.
