Gold price is poised to revisit two-week highs above $2,050 in the early hours of Thursday. This surge in price is primarily attributed to a fading US Dollar and Treasury bond yields, as markets react positively to China’s fiscal support and reassess the US Federal Reserve’s interest rate outlook.
Additional insight: The rise in Gold price is also driven by China’s fiscal policies, which aim to boost domestic demand and stabilize its manufacturing sector. The upcoming US jobs data, including the Nonfarm Payrolls report, will play a crucial role in affirming the market’s expectations for the Fed’s monetary policy in the coming months.
The confirmation of a triangle breakout and a bullish daily Relative Strength Index (RSI) on the Gold price chart indicate a strong upwards trend. However, the US Treasury bond yields and the US Dollar’s performance in response to the upcoming economic data will heavily influence Gold price movements.
As seen on the daily chart, the immediate strong resistance for Gold price is at $2,056. The bullish bias is expected to remain intact, with support seen at the $2,030 region. Geopolitical tensions, economic uncertainties, and fluctuations in the US Dollar and Treasury bond yields will continue to drive Gold price movements in the near future.
