Gold Price Analysis: Bulls to face an uphill task beyond $1950 – Confluence Detector
Having closed above the critical $1933 barrier, Gold treads waters amid the China data disappointment and retreat in the US Treasury yields across the curve. Meanwhile, the US dollar holds onto Thursday’s rebound, with the upside capped by the US fiscal impasse and jittery markets ahead of the critical US Retail Sales data.
Despite gold’s $200 rebound from three-week lows, the bright metal remains on track for a 4% weekly drop, snapping the nine-week winning streak. Let’s take a look at technical levels to gauge where the price is headed in the upcoming session.
Gold Price Forecast: Bull-bear tug-of-war to extend ahead of US Retail Sales
Gold (XAU/USD) extended Wednesday pullback and recovered nearly $200 from three-week lows to end Thursday higher at $1953.60. The yellow metal rose as high as $1966 amid negative sentiment on Wall Street but failed to hold onto higher levels. The rise in the US Treasury yields diminished the demand for the yieldless gold and pushed it lower. Yields on US Treasuries rose after a poor auction of 30-year bonds. The US dollar benefited from higher yields and upbeat US Jobless Claims data, further, limiting the upside attempts in the precious metal. However, rising coronavirus fears globally combined with a delay in the US fiscal stimulus kept the floor under gold prices.
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