According to experts, the relentless fall in US Treasury bond yields fueled the weakness in the dollar again, giving new impetus to the gold bulls. Gold slumped to $1,824 after U.S. interest rates attempted to bounce off the dollar amid concerns about the Delta variant spreading across the Atlantic at both speeds, excluding Fed Leader Jerome Powell’s speech to Congress on Wednesday. Gold traders now await US economic data and Powell’s word on Thursday’s Senate Banking Committee for new trade momentum. In addition, an analyst made a gold price assumption with technical information. Here are the details…
What affected the gold price?
Gold (XAU/USD) bulls took a breather near $1,826 as European traders prepare for Thursday. Meanwhile, the precious metal renewed its monthly high and posted its highest gain in six weeks. Gold buyers welcomed the weakness of the US dollar the day before after Federal Reserve (Fed) Leader Jerome Powell rejected the need for monetary policy adjustments. On the other hand, it is thought that the panic that variants of the coronavirus will take over developed economies will increase the demand for safe harbors.
According to many experts, weekly US Unemployment Claims and Philadelphia Fed Manufacturing Index information, Powell’s second-kind speech and virus updates will be key points for gold buyers.
Gold price assumption from technical analyst
According to technical analyst Anil Panchal, gold prices remain in line with the two-month horizontal resistance around $1,845 as the moving average convergence divergence (MACD) contributed to the bullish trend and commodity trading successfully traded above the 100-day moving average (DMA). is doing. However, it should be noted that fresh purchases can expect a clear break of $1,826, which includes the 200-DMA.
In the bearish scenario, the analyst said, “1. The $800 threshold could offer immediate reinforcement during the price’s retracement breakthroughs ahead of the 100-DMA level at $1,791. Still, if there is a daily close below $1,791, gold will not hesitate to attack an ascending reinforcement line near $1,764. For more gold news Cryptocoin. com “FED Leader Speaks and Gold Price Jumped!” You can check our article.