- Gold underpins July 2021 swing highs around $1,834 as market braces for US inflation.
- US Treasuries fell led by 10-year yields down to 1,923%.
- XAU/USD Technical Outlook: Neutral, unless it breaks above $1,834, which would change the bias to neutral-bullish.
Gold (XAU/USD) rises in the American session riding on a catalyst, coupled with falling US Treasury yields, ahead of the US inflation report. At press time, XAU/USD is trading at 1,834.61 $, advancing close to 0.50%.
Financial market sentiment is upbeat, as reflected in equity markets. The global bond sell-off came to a halt when the US Department of Labor released the January inflation report on Thursday, widely anticipated by market players. That said, on Wednesday, US Treasury yields fell led by the 10-year yield which lost 3 bps to 1,923%.
XAU/USD Price Forecast: Technical Outlook
On Wednesday, XAU/USD broke the centerline of the Pitchfork channel at $1,830, exposing the July 2021 high at $1,834. However, that price level was unsuccessfully tested four times, although, in late November 2021, it was broken when XAU/USD hit $1,877 before falling back to $1,753.
The first resistance of the XAU/USD would be at $1,834. A daily close above would expose the Jan 25 high at $1,853, followed by a nine-month downtrend line around $1,860.
On the other hand, the first support for XAU/USD would be the center line of Pitchfork around $1,820. A breach of the latter would expose the confluence of the 50 and 100 DMA around $1,806, followed by the 100 DMA at $1,798.
Additional technical levels
Source: Fx Street
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