Gold jumps to levels above $1420, could post highest close in year

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  • Yellow metal gains on economic outlook worries and lower US yields. 
  • XAU/USD holds above $1420, near the highest daily close since 2013. 

Gold continued to rally and printed a fresh 6-day high at $1424 and then pulled back modestly. As of writing, trades at $1421, up to $15 for the day and more than $20 above the daily lows. 

The move higher took place amid a decline in US yields and also on lower equity prices on Wall Street. Crude oil prices turned negative, adding to yesterday’s losses. Overall, the decline in global yields continues to be a key support to gold prices. The anticipation of more stimulus from the Federal Reserve and the European Central Bank is pushing bond yields to the downside. 

XAU/USD continues to move in a consolidation range, holding above the 20-day moving average and testing at the moment the upper limited. A daily close above $1425 would be the highest since 2013 and would point to more gains. While a retreat from current levels could find support at $1400/05 (psychological / 20-day moving average); below the decline is likely to extend to $1385. 

 

 

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