The yellow metal closed near the $1930 region on Thursday and is now trading above the $1940 level after piercing the critical resistance at $1934/35 zone while bulls eyes the psychological $1950 barrier. Dollar could find support from Powell-led stronger T-yields, FXStreet’s Dhwani Mehta reports.
Key quotes
“The yieldless gold is likely to remain underpinned by lower rates. However, Powell induced rebound in the Treasury yields could keep gold’s upside limited in the near-term. The relentless rally in the US rates could fuel a recovery in the US dollar in the day ahead, as attention now turns towards the US Core PCE Price Index and Michigan Consumer Sentiment Index.”
“Gold bulls now look to retest the psychological $1950 barrier, where the horizontal 200-HMA coincides. A breakthrough the latter could call for a retest of Thursday’s high at $1976.”
“To the downside, should the $1934 level give way, a sharp decline towards the rising trendline support at $1914 cannot be ruled. Below which, Wednesday low of $1903 could be tested.”
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