The yellow metal closed near the $ 1930 region on Thursday and is now trading above the $ 1940 level after breaking through critical resistance at the $ 1934/35 area as bulls watch the psychological barrier of $ 1950 . The dollar could find support with higher T yields led by Powell, reports Dhwani Mehta of FXStreet.
“Gold with no yield will likely remain supported by lower rates. However, the Powell-induced rebound in Treasury yields could limit gold’s rise in the near term. The relentless rise in US rates could fuel a rally in the US dollar in the coming day, as attention now turns to the US Core PCE Price Index and the Michigan Consumer Sentiment Index.
The Gold Bulls are now looking to retest the psychological barrier of $ 1950, where the horizontal 200-HMA coincides. A breakthrough, the latter could require a retest of Thursday’s high at $ 1976. “
On the downside, the $ 1934 level is expected to give way, a sharp decline towards the upward trendline support at $ 1914 cannot be ruled. Below that, the Wednesday low of $ 1903 could be tested. “