Gold Price Forecast: XAU/USD tests weekly highs around $1760

• Gold advances for the second day in a row.
• Price facing important resistance in the area of ​​weekly maximums.
• The dollar falls ahead of US data.

Gold is rising on Wednesday and tests levels above $1760. Recently following the Eurozone inflation data, the price went as high as $1,763, just shy of Monday’s high, and then pulled back to $1,760, where it is trading.

The increases are driven by a decline in the dollar throughout the market and given the stability in the yields of sovereign bonds. The annual inflation rate for the Eurozone fell from 10.6% to 10%, less than the 10.4% expected. Although after the data from Germany on Tuesday, the expectation of numbers lower than the market consensus had grown. In the US, growth data for the third quarter, the ADP employment report, and the Beige book will be published.

Signs of a decline in inflation, along with those of a Federal Reserve less aggressive in the next meetings, they are supporting gold and playing against the dollar. The DXY falls 0.33% and trades around 106.50.

Bullish but still limited

Gold is technically bullish, but needs to break and assert above $1760 to enable further advanceswith the next target at $1,771, and then the focus will shift to the November highs at $1,787.

In the opposite direction the key support is located at $1737, which is where the 20-day moving average and horizontal support are passing by. Underneath, the metal would be vulnerable.

technical levels