XAU/USD Bid on Weak Greenback, Softer Yields

GOLD FORECAST: XAU/USD PRICE ACTION EXPLOITING US DOLLAR WEAKNESS

• Gold worth motion is up over 12% since forming a double-bottom close to $1,680/oz
• XAU/USD has seemingly piggybacked on US Greenback weak point and decrease actual yields
• Gold outlook stays shiny, however the treasured metallic does appear a bit prolonged

Gold worth motion prolonged its climb for the fourth consecutive buying and selling session on Tuesday. XAU/USD gained 0.14% to commerce at contemporary 16-week highs close to the $1,870-price degree. The valuable metallic is now up greater than 12% because it fashioned a double-bottom chart sample in March. US Greenback weak point and decrease actual yields stand out as two major drivers of gold shopping for stress. I just lately famous how an acceleration in gold volatility stood out as one other bullish catalyst for XAU/USD.

XAU/USD – GOLD PRICE CHART: WEEKLY TIME FRAME (25 NOV 2020 TO 18 MAY 2021)

Chart by @RichDvorakFX created utilizing TradingView

Gold costs are beginning to look susceptible to a slight pullback, nevertheless, as the valuable metallic contends with technical resistance posed by its descending channel, higher Bollinger Band, and mid-point retracement of the August 2020 to March 2021 buying and selling vary. The relative power index on a each day gold chart additionally speaks to ‘overbought’ situations. If a pullback does materialize, gold bulls would possibly contemplate taking part in the psychologically-significant $1,800-price degree as a possible assist degree.

Preserve Studying – US Greenback Outlook: DXY Index Hammered as Treasury Yields Ebb

— Written by Wealthy Dvorak, Analyst for DailyFX.com

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