Gold price is poised to continue its upward momentum, with a consolidated weekly high near $2,410. The recent rebound in Gold price is supported by a return in risk flows and a pullback in US Treasury bond yields, which has weighed on the US dollar. Additionally, unexpectedly positive US Jobless Claims data has alleviated concerns of a recession, boosting market sentiment.
Gold Price Awaits Catalysts for Next Push Higher
Thursday saw a significant increase in Gold price, despite a rebound in the US Dollar and Wall Street indices. This was driven by strong US weekly Jobless Claims data, which showed a 17,000 decrease in unemployment benefits claims, calming fears of a recession. Investor confidence was further bolstered by conciliatory comments from Federal Reserve officials.
The current market environment, characterized by risk-on sentiment and geopolitical tensions, has supported Gold price at its weekly high of $2,428. Technical analysis indicates a bullish outlook, with Gold price maintaining a symmetrical triangle formation and regaining the 21-day Simple Moving Average (SMA) support at $2,415.
Looking ahead, market participants are eyeing next week’s US Consumer Price Index (CPI) data for further direction. The absence of major economic releases on Friday shifts focus to risk trends and geopolitical developments, such as the ongoing Gaza peace talks.
Gold Price Technical Analysis: Daily Chart
On the daily chart, Gold price remains within a symmetrical triangle formation, supported by the key rising trendline at $2,380. The 14-day Relative Strength Index (RSI) is in positive territory, indicating upside potential for Gold price. Immediate resistance levels are seen at $2,459 and $2,470, while support is found at the 21-day SMA at $2,415.
In summary, Gold price is expected to continue its upward trajectory, supported by positive market sentiment and technical indicators. Investors should monitor key economic data releases and geopolitical developments for potential impacts on Gold price movements.