Gold price (XAU/USD) surged 1.78% on the day after bond yields turned south following mixed US data. The yellow metal extended its rally with a strong upside move that took it beyond the $1760 price level.
This move followed broad-based weakness on the US Dollar after several data sets failed to spark demand on the greenback. Also, real bond yields fell, with the US 10-Year Treasury note shedding 0.23% as of the time of writing. This drop in the bond yields appears to be fuelling the rally in gold prices, which gained momentum in the US session.
Technical Levels to Watch
There has been an intraday violation of the 1763.30 resistance by the active daily candle. If this level is uncapped, then the pathway towards the next resistance at 1789.49 will be blown open. Above this level, 1815.20 serves as an additional upside barrier.
On the flip side, failure to breach the 1763.30 resistance could lead to a retracement pullback, targeting 1741.01 in the first instance. A further decline brings 1719.13 into the picture, with 1699.43 and 1680.59 starting to look like distant downside target levels.