- Gold extends bounce from levels below $1700.
- Advance has next resistance at $1730.
The Prayed is rising modestly on Thursday and is trading at two-day highs at $1723, extending Wednesday’s advance. This comes in the face of a weakening dollar, lower Treasury yields, and ahead of the European Central Bank’s decision and Powell’s speech.
The dollar is pulling back against most currencies on Thursday. The 10-year Treasury bond yields 3.24%far from yesterday’s peak of 3.35%, while the 2-year tranche yields 3.43%, whereas the previous day it reached 3.52%.
Within minutes, the European Central Bank will announce its monetary policy decision, which is expected to be a hike of 75 basis points. Later it will be the turn of the report on unemployment benefits, Lagarde’s press conference and then a presentation by Jerome Powell.
The technical landscape The very short-term price has improved for gold, after managing to hold onto long-term support, where the 2021 and 2022 lows are in the $1,675 area. The bounce from this level continues and is breaking a short-term bear line and the $1720 level.
If it continues above $1,720, the bias will be to the upside, with the next resistance at $1,730 and $1,740. A return below $1,710 would put XAUUSD under pressure again, exposing $1,700.
XAUUSD 4 hour chart
Source: Fx Street
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