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Gold Price Forecast: Gold Break Out as Bulls Take Charge, FOMC Minutes Eyed

Gold Price Forecast: Gold Break Out as Bulls Take Charge, FOMC Minutes Eyed

Justin McQueen, Strategist

Gold Price Analysis and News

  • Gold Bulls Take Charge
  • Softer USD and Falling Real Yields Underpin Gold
  • Gold Levels to Watch

Gold Bulls Take Charge

Gold bulls remain in control with the precious metal closing above its 200DMA for the first time since early February. The combination of lower real yields and a softer USD, which has broken below the psychological 90.00 handle has underpinned this latest move in gold. With that said, the move above trendline resistance puts 1875 in focus, which marks the mid-January high. A break above this level and the door opens up to a test of 1900, while there is little in the way until 1960-65. As I have highlighted previously, the key indicator to track for the direction in gold is real yields, with increasingly negative real yields, gold supportive.

US Real Yields Remain the Best Guide for Gold Direction

Gold Price Forecast: Gold Break Out as Bulls Take Charge, FOMC Minutes Eyed

Source: Refinitiv

Gold Levels to Watch

As mentioned above, the initial focus is on resistance at 1875, where a break above puts 1900 in focus. Looking ahead, aside from the USD downtrend, the precious metal will likely take its cue from the upcoming Fed meeting minutes, however, should the minutes highlight any hawkish dissenters opting for a consideration of tapering QE in the near future, this could take some of the shine from gold, pushing the precious metal back to support at 1844.

Gold Chart: Daily Time Frame

Gold Price Forecast: Gold Break Out as Bulls Take Charge, FOMC Minutes Eyed

Source: Refinitiv

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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