Gold Price Analysis – Declining US Treasury bond yields to lift XAU/USD to $1745
Gold is posting strong gains for the second straight day. According to FXStreet’s Analyst Eren Segezer, XAU/USD could target $1,745 if US T-bond yields extend the slide.
See – Gold Price Analysis: Steepening US real yield curve to drag down XAU/USD to $1600 – CE
Gold seems to have turned neutral with a slight bullish bias
“The sharp decline witnessed in the US Treasury bond yields seems to be fueling gold’s rally. On Wednesday, the benchmark 10-year US T-bond yield managed to post daily gains but failed to hold above the widely-accepted pivotal level of 1.75%. Following the upbeat macroeconomic data releases from the US, the 10-year T-bond yield extended its slide and was last seen losing 3.33% at 1.686%.”
“On the upside, the initial resistance is located at $1,745 (upper limit of the latest consolidation channel) ahead of $1,770 (50-day SMA). However, the price is unlikely to reach the latter unless it reclaims $1,745.”
“Supports, on the other hand, are located at $1,720 (20-day SMA, static level), $1,700 (psychological level) and $1,680 (cycle low, March 30 low).”