Search ForexCrunch

Gold price is building on Tuesday’s break higher, sitting at fresh four-month tops of $1908. Is there room for additional upside? Uptick in Treasury yields amid overbought conditions could limit the advance, FXStreet’s Dhwani Mehta briefs.

Fedspeak draws attention amid a data-light US calendar

“The upbeat market mood undermines the sentiment around the greenback, exerting additional upside pressure on gold. Meanwhile, gold traders ignore a minor uptick in the Treasury yields, as they cheer a clear break above the key $1900 threshold.”

“XAU/USD will continue to track the dynamics in yields and the dollar amid a quiet US docket. Fedspeak will be closely followed.”

“Despite the overbought Relative Strength Index (RSI) on the daily chart, gold buyers defy the bearish odds and remain on track to test the January 8 high of $1917. However, the further upside appears elusive, as gold bulls could take a breather before resuming the uptrend towards $2000.”

“Any corrective pullbacks could meet initial demand at $1890, the static resistance now support. Further south, strong support near the $1872/70 region could guard the downside.”