Gold price is eyeing $1750 following the easing of the US treasury yields and the dollar. On Wednesday, the precious metal was at 1740. At the same time, the greenback was up by 0.05% at 92.35 after declining in the previous session to 92.27. In the year’s first quarter, the dollar had surged to its highest level since November 2020 at 93.44. However, it has since been on a decline despite the upbeat labour market data and overall optimism on the US economic growth.
Later in the day, gold price will be reacting to FOMC minutes on the Federal Reserve’s March meeting. The minutes will shed more light on the bank’s position on inflation and the ongoing bond-buying program. The benchmark 10-year Treasury yields are down by 0.53% at 1.64. This is a sharp decline from the over one-year high hit in the previous quarter at 1.77.
Gold Price Technical Outlook
Gold price is trading between the upper and middle Bollinger bands. After dropping to about a month’s low at slightly below 1,680, the precious metal has risen by 3.63% to the current 1,740.79. Besides, it is trading above the 50 and 200-day exponential moving averages. Notably, the short-term 50-day EMA has crossed over the 200-day EMA to the upside. Overall, the outlook is bullish.
The bulls are likely to push gold price higher to 1,750, which will be a three-week high. At that point, it will probably experience some resistance, with 1736 being the support level. On the flip side, a move below the current support level will have the bears testing 1721 and 1710.
Gold Price Chart