Gold Price: Here’s What to Expect in the New Week

Gold price is rebounding amid a decline in US bond yields. In the past week, the benchmark 10-year Treasury yields dropped from 1.59 on Thursday to end the week at 1.44. Earlier on Monday, it extended its pervious losses by hitting an intraday low of 1.35. While it has since rebounded to its current level of 1.42, it is still significantly lower than last week’s high. Lower Treasury yields usually curb the gains of the US dollar, thus acting as a bullish catalyst for gold price.

At the same time, gold price will be reacting to remarks by various Fed officials in the course of the week. Jerome Powell and former New York Fed President, William Dudley are some of the officials whose statements will impact gold price movements. The anticipated speeches come a few days after the US central bank’s hawkish surprise. US GDP and home sales will also affect the precious metal in the ensuing sessions.

Technical outlook

Gold price is on a rebound after having its worst week since the onset of the coronavirus pandemic in March 2020. In the past week, it declined by about 6.13% from 1,877.93 on Monday to an intraday low of 1,760.37 on Friday. On a four-hour chart, it is still below the 25 and 50-day exponential moving averages.

I expect gold price to continue rising as the bulls eye the prior resistance level of 1,800. With more buyers entering the market, the prices may move past that level to its next target at 1,833.14, which is along the 50-day EMA. On the flip side, a move below the current support level of 1,760.37 will have the bears retest the prior support level at 1,732.40.

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Gold price chart

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