Gold Price extends a five-day rally amid a broadly subdued US dollar.
Risk-aversion, falling Treasury yields boost the XAUUSD gains.Focus on daily closing above 21-DMA for the additional upside.
Gold Price is heading back towards the highest levels in two weeks, as bulls continue to draw support from the falling US Treasury yields across the curve.
Risk-aversion remains at full steam, accentuated by the weak Eurozone and the UK business PMIs, which drives the haven demand into the US government bond. This, in turn, weighs down on the Treasury yields, aiding the upside in the non-yielding gold.
Moreover, the bright metal also capitalizes on a broadly subdued US dollar. The greenback came under renewed selling pressure after the EUR/USD pair rebounded sharply on the latest hawkish comments from ECB President Christine Lagarde. The dollar is keeping its corrective mode intact ahead of Wednesday’s FOMC May meeting’s minutes.
Gold Price: Daily chart
Daily closing above the 21-DMA of $1,857 is needed to confirm a bullish reversal, exposing the additional upside towards the mildly bullish 100-DMA at $1,885. Ahead of that the $1,870 round figure could challenge the bearish commitments.
On the flip side, the immediate support is seen at the $1,850 psychological level. Sellers will then look out for the horizontal flattish 200-DMA at $1,839. Acceptance below the latter will trigger a fresh downswing towards the $1,800 mark.
GBP/USD recovers to 1.2500 amid renewed USD weakness
GBP/USD is trading close to 1.2500, recovering from a slump fuelled by dismal UK data. The UK services sector activity weakened sharply in May, reviving recession fears and weighing heavily on the British pound. The renewed USD weakness is aiding cable’s rebound.
EUR/USD holds above 1.0700 despite weak EU PMI data
EUR/USD capitalizes on ECB President Lagarde’s hawkish comments early Tuesday and trades above 1.0700. The data from the eurozone showed that the business activity in the private sector expanded at a softer pace than expected in May.
Gold clings to gains near $1,860 amid falling yields
Gold Price extends a five-day rally amid a broadly subdued US dollar. Risk-aversion, falling Treasury yields boost the XAUUSD gains. Focus on daily closing above 21-DMA for the additional upside.
Crypto markets to turn green as bulls seize control
Bitcoin price is coiling up with no immediate directional bias in sight. Investors can expect BTC to sweep key levels to the bottom, allowing altcoins like Ethereum and Ripple to trigger a run-up.