• Gold rises for the fifth day in a row on Tuesday.
• US inflation data among the highlights of the day.
• Treasury bond yields fall after setting new highs in years.

Gold is rising again on Tuesday, although it remains far from Monday’s peak. In the Asian session, XAU/USD reached as high as $1,960 before falling back to $1,949, the day’s low. It is trading around $1955, with a very short-term bullish bias ahead of key US data.

A daily close clearly above $1960 would point to continued bullishness. Resistances are seen at $1970/75 and at $1990. In the opposite direction, at $1949 and $1940 there are the first supports, before the 20-day moving average at $1934.

Bullish, not free of corrections

Monday the day was extremely volatile for gold, which hit weekly highs in $1969, before correcting the entire intraday rally to the $1940 area. The high volatility did not have a correlate in the foreign exchange market. Movements in the bond market coupled with technical factors favor such runs in XAU/USD.

Treasury yields hit new cycle highs on Tuesday before retreating slightly. The 10-year rate climbed to 2.83% and stands at 2.79%. This comes on the heels of US March inflation data to be released at 1230 GMT.

The CPI is expected to rise to 8.4% from 12 months ago. Fiscal figures for March will be known later. Another focus of attention will be a presentation by Thomas Barkin, president of the Richmond Fed, and Lael Brainard, governor of the Fed, will answer questions about the economic outlook at a Wall Street Journal event.

Technical levels