Gold Price Forecast: XAUUSD extends bounce to 1-week highs above $1720

• Gold continues to reverse, after climbing $45 from Thursday’s low.
• Combination of falling sovereign bond yields and rising stock markets boost XAUUSD.
• Confirmation above $1,730 will open the doors for a test at $1,750.

The Prayed which broke higher again and hit a one-week high at $1,725. In this way, it has already risen $45 after falling to $1,680 on Thursday, the lowest since August 2021.

The bounce put gold heading for first weekly rise since early June. Technically, the rally comes from a key support zone, made up of 2021 multi-month lows around $1,675. If it loses that level, renewed negative pressures for the yellow metal would be expected. Those risks have been reduced in recent sessions.

If it asserts above $1,720, the focus will shift to $1,730, where the next resistance is before the key $1,750 area. The very short-term picture is skewed to the upside, which would change if there is a return below $1700.

positive combination

Gold’s advance comes with equity markets in better tone. Although Wall Street futures are trading negative, this implies a small correction after Thursday’s significant rise. In Europe, the main squares operate in green. Silver has been trading flat for hours around $18.75, without being boosted for the time being by the rise in gold.

The main factor for the advance of the metal can be seen in the sovereign bond market. The US 10-year bond stands at 2.82%, the lowest since July 6. Germany’s 10-year bond yielded 1.06%, the lowest since May, the day after the European Central Bank meeting. Next week it will be the turn of the Federal Reserve. On Friday in the US, the preliminary S&P Global PMI report for July will be published.

Technical levels