- Summary:
- Gold price remains in the bear market as we get into a new month. Rallying US treasury yields and a stable US dollar are key drivers.
Gold price is up by 0.43% at $1,714.72 following the easing of the US treasury yields and dollar. However, the precious metal remains in a bear market as it has for the better part of the year. On Thursday, the 10-year treasury yields fell by 1.40% to 1.722 after the bond price rose by 0.25% to $94.64. However, this is still close to the over one-year high set on Tuesday at 1.77. Bond price usually has an inverse relationship with the yields.
Subsequently, the US dollar has dropped by 0.05% to $93.19. Earlier in the week, the dollar index hit its highest level since November 2020 at around 93.44. Nonetheless, gold price remains under pressure as the greenback’s uptrend continues. Later in the day, the US dollar will be reacting to the jobless claims numbers. Analysts expect a reading of 680,000, down from last week 684,000.
Gold Price Technical Outlook
Gold price is trading higher after forming an inverted head-and-shoulder pattern. The pattern, which is a bullish formation, spans for close to a week. The precious metal is currently trading along the neckline at 1716.35. While it is above the 50-day exponential moving average on a 2-hour chart, it remains below the long-term 200-day EMA. Overall, the bearish outlook still holds.
Notably, gold price is likely to trade sideways in today’s session before testing a higher target. If the bulls manage to push the price past 1720.00, the next level to watch out for will be 1728.13 and 1745.50. On the flip side, a move below 1710.00 will have the bears testing the psychological 1690 and lower level of 1677.72.
Gold Price Chart
