Gold price is taking a breather after its spike on Tuesday. The decline in US treasury yields and the subsequent weakening of the greenback have offered support to the precious metal. Since the beginning of April, the US dollar has fallen by about 1.71%. On Wednesday, the dollar index, which tracks the value of the US dollar against a basket of other currencies, was down by 0.05% at 91.78.
EUR/USD is up by 0.10% at 1.1959 while GBP/USD and AUD/USD have risen by 0.24% and 0.51% respectively. While the weakening of the US dollar has been positive to gold price, today’s rise in the 10-year US bond yield may stall the rally. The yields have surged by 0.79% to 1.63. However, it remains significantly below the record-high of 1.77 that it hit in late March.
Gold Price Technical Outlook
Gold price has taken a breather after Tuesday’s surge. At the time of writing, the precious metal is up by 0.13% at 1747.73. Notably, it is trading above the 25 and 50-day exponential moving averages. Besides, it has formed a bearish flag pattern.
Despite the current consolidation, the outlook remains bullish. The bulls are striving to push gold price past 1750, which has been a key resistance level for close to a week. If they manage to break out of that resistance, the next levels to watch out for will be at 1760 and 1775. On the flip side, a move below 1735 will have the bears targeting the prior support level of 1723.87 and the psychological 1700.
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Gold Price Chart
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