Gold Price Forecast: XAUUSD remains strong, still looking at $1770
- XAUUSD rebounds after hitting a fresh low at $1751.
- US yields erase earlier gains, back near recent lows.
- US dollar weakens during the American session.
Gold continues to shine as it shows the latest rebound. XAUUSD printed a fresh daily low during the American session at $1751, but only to rebound more than $10 in a few minutes, rising back above $1760. The outlook remains positive for the metal that is trading near the $1770 resistance area.
Technicals and yields
Gold is about to post the second weekly gain in a row, with the best performance in months. What it started as a correction, after falling to test the critical support around 1675$, it has become a strong rally that could add to gains if the price holds above $1750.
The decline in US yields after the FOMC meeting triggered more gains in XAUUSD. Even after US economic data released on Friday showed a still strong consumer and high inflation, the demand for Treasuries held firm. The US 10-year yield stands at 2.65%, and the 30-year is back under 3.00%.
The greenback is still on positive ground on Friday but off highs and about to end the week on a weak note. The DXY is flat for the day around 106.10, consolidating weekly losses. The long-term perspective is still bullish for DXY but the momentum in the short-term has faded.
Technical levels