- Gold rises supported by a decline in government bond yields.
- After a brief pullback in response to the US job vacancies report, the XAU/USD pair bounced to weekly highs.
He Gold It rose for the second day in a row on Wednesday, buoyed by declining government bond yields. The yellow metal reached its highest level in a week and is trading above $1,970.
Gold continues to shine
After the opening bell on Wall Street, the XAU/USD pair gained momentum and broke above $1,970. However, after the release of the US jobs report, it fell back to $1,960, before rebounding to $1,974, hitting a new weekly high.
US data released so far on Wednesday has been mixed. The JOLTS of job offers stood at 10.10 million in April, against expectations of a decline to 9.73 million. For its part, the Chicago PMI showed a strong decline in May, from 48.6 to 40.4, compared to expectations of 47. These economic figures triggered the volatility of the markets. The ADP report on employment and weekly jobless claims will be released on Thursday, while the official employment report will be released on Friday.
Although the Dollar Index rose 0.45%, it is not limiting Gold’s gains. On Wednesday, government bond yields were the main driver. The 10-year Treasury yield stands at 3.65%, the lowest in more than a week, while the 10-year yield falls to 2.24%, the lowest in two weeks. The nervousness of the markets and the easing of inflation in Europe are giving support to the recovery of bonds.
The near-term outlook for Gold looks positive as it trades above $1,955, with resistance expected around $1,970. A clear consolidation above this level would leave the door open for further gains. The next strong resistance could be seen at the 20 and 55 SMAs, currently at $1,988.
technical levels
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.
