Gold prices rose for the third day in a row on Friday and were headed to post their second consecutive weekly gain as the yellow metal benefits from the risk-off mood and the U.S. yields drop.
The spot price, XAU/USD, extended the advance and printed a 23-day high of $1768 as U.S. yields – which could be considered gold’s opportunity cost – fell to multi-month lows. At the time of writing, the metal was trading at $1762, up 0.35% on the day and posting a 2% weekly gain.
U.S. yields accelerated lower after the FOMC meeting, fueling the XAU/USD rally. The US 10-year yield fell to 2.618%, and the 30-year rate hit a low of 2.95%.
On Friday, data showed the U.S. PCE price index – the Fed’s preferred inflation gauge – rose by 6.8% over the 12 months to June, while core inflation jumped by 4.8% in the same period. Rising inflation and negative growth – as shown by GDP figures this week – continue to fuel fears of stagflation, putting the Fed in a tough spot, although Powell & Co. downplayed recession prospects after hiking rates on Wednesday.
From a technical perspective, the XAU/USD short-technical outlook has turned bullish, according to indicators on the daily chart, while the price has continued to post higher highs after breaking above the 20-day SMA.
Still, the longer-term bias remains tilted to the downside according to the weekly chart, with crucial support at the 200-week SMA at the $1660 area.
On the upside, immediate resistance is seen at the $1770-80 area, followed by the $1800 psychological level and then the early July highs at the $1815 area.
The spot price, XAU/USD, extended the advance and printed a 23-day high of $1768 as U.S. yields – which could be considered gold’s opportunity cost – fell to multi-month lows. At the time of writing, the metal was trading at $1762, up 0.35% on the day and posting a 2% weekly gain.
U.S. yields accelerated lower after the FOMC meeting, fueling the XAU/USD rally. The US 10-year yield fell to 2.618%, and the 30-year rate hit a low of 2.95%.
On Friday, data showed the U.S. PCE price index – the Fed’s preferred inflation gauge – rose by 6.8% over the 12 months to June, while core inflation jumped by 4.8% in the same period. Rising inflation and negative growth – as shown by GDP figures this week – continue to fuel fears of stagflation, putting the Fed in a tough spot, although Powell & Co. downplayed recession prospects after hiking rates on Wednesday.
From a technical perspective, the XAU/USD short-technical outlook has turned bullish, according to indicators on the daily chart, while the price has continued to post higher highs after breaking above the 20-day SMA.
Still, the longer-term bias remains tilted to the downside according to the weekly chart, with crucial support at the 200-week SMA at the $1660 area.
On the upside, immediate resistance is seen at the $1770-80 area, followed by the $1800 psychological level and then the early July highs at the $1815 area.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.