Gold price has pulled back from its rally; even as it remains on an uptrend towards 1,800. On Thursday, it was down by 0.17% at 1790.64. The relatively weak US dollar, and decline in US treasury yields, remain the key drivers of the rally.
The benchmark 10-year US bond yield is at 1.55 after reaching an intraday low of 1.53. Despite the slight rise, it remains on a downward momentum, having dropped from the record-high of 1.77 at the end of March. Based on the existing correlation between bond yields and the greenback, the latter has risen by 0.07% at 91.17. Nonetheless, it is still on its month-long downtrend.
Investors are now keen on how the US dollar will react to today’s data on US initial jobless claims and existing home sales. Gold price has an inverse relationship with the US dollar. As such, better-than-expected numbers will be a bearish catalyst for the precious metal.
Gold Price Technical Outlook
Gold price has maintained its upward momentum as the bulls eye the psychological 1800. However, after an intraday high of 1798 on Wednesday, the precious metal has pulled back to its current 1790.64. Despite the decline, it remains within the ascending channel. On a 3-hour chart, it is trading above the 25 and 50-day exponential moving averages.
For as long as it remains within the ascending channel, the eyed 18,000 is attainable in the near term. Nonetheless, gold price will probably find some resistance at 1798 before reaching the target. On the flip side, a move outside of the ascending channel on the downside will have the bears targeting 1780. Below that, the next level to watch out for will be 1765.40.
Gold Price Chart
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