- Gold is strong as yields on 10-year US Treasuries fall 10 basis points to 1.43%.
- Risk-off sentiment boosted the XAU / USD outlook as the Omicron variant of COVID-19 threatens to derail economic growth.
- XAU / USD Technical Outlook: A break above $ 1,807 would expose $ 1,815, followed by $ 1,834.
El oro (XAU/USD) rises during the American session, jumping from the daily low of $ 1,780 earlier in the day to $ 1,807 at press time, amid comments from Moderna’s CEO in an interview with the Financial Times, predicted a drop in the efficacy of existing vaccines stimulating a flight to safe haven assets, as shown by the decline in US equity futures indices, ahead of the opening of Wall Street.
This boosted the outlook for the yellow metal, which has strengthened thanks to falling US Treasury yields, acting as a headwind for the dollar. The 10-year US Treasury yield fell 10 bps to 1.43%, while the US dollar index, which measures the value of the dollar against a basket of its peers, falls sharply by 0.74%, breaking below 96.00, settling at 95.65 at press time.
XAU / USD Price Forecast: Technical Outlook
Gold on the 1-hour chart is approaching resistance at the daily R2 pivot level at $ 1,807. The 50 and 100 hourly simple moving averages (SMAs) lagged behind, around the $ 1,796 area, while the 200 hourly SMA is at the confluence of the R3 daily pivot at $ 1,815, which is also the 26 high. of November.
On the way up, $ 1,815 would be the strongest line of defense for USD bulls, which in the event of a breakout would expose the September 3 high of $ 1,834.
On the other hand, if the previous one is not exceeded, the figure of $ 1,800 would be exposed, followed by the confluence of the 50 and 100 hourly simple moving average (SMA) around the range of $ 1,892-94.