- The price of gold once again marked nine-month highs above $1,935 during the European session.
- The rally in US Treasury yields is capping gold’s rise amid a weaker dollar.
- The uptrend remains intact for the gold price amid a bullish daily technical setup.
The price of Gold (XAU/USD) is pulling back from the highest level seen in nine months at $1,938 during the European session, as the renewed rally in US Treasury yields is helping the US dollar rally. Meanwhile, the dollar also seems to benefit from cautious optimism, amid dovish expectations from the Federal Reserve, mixed US corporate earnings reports and weak domestic economic data.
Investors are also turning to repositioning ahead of Fed “quiet period” and Chinese Lunar New Year holidays, which start next week. Meanwhile, speeches by Fed policy makers Patrick Harker and Christopher Waller will remain in the spotlight for the next directional move in the gold price as they will be the final words of the US central bank. US prior to its February 2 monetary policy announcement.
Gold Price Technical Outlook
Gold Price: Daily Chart
On the upside, gold buyers will gather strength to test the psychological level of the $1,950above which the confluence of the maximums of April 20 and April 22 will come into play around the $1,958.
The 14-day Relative Strength Index (RSI) is peeking into the overbought zone, around 71, suggesting more room to the upside.
On the other hand, gold sellers will again challenge the horizontal support line just below the $1,900.
Further down, the correction could resume towards the zone of the $1,865the meeting point between the high of January 11 and the upward-sloping 21-day moving average.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
