Gold staged a decisive rebound toward $1,800 on Thursday as the yellow metal turns bullish on falling bond yields. FXStreet’s Eren Sengezer notes that a daily close above $1,820 would open up the $1,835 mark.
Investors will keep a close eye on yields
“Currently, the 10-year yield is below 1.5% and unless it manages to rebound above that level, XAU/USD could continue to push higher. On the other hand, gold could lose interest in case the 10-year yield reclaims 1.6% and steadies above that level.”
“On the upside, XAU/USD could target $1,810 (static level) ahead of $1,820 (Fibonacci 38.2% retracement of the April-June uptrend). A daily close above the latter could open the door for additional gains toward $1,835 (static level).”
“First support now aligns at $1,790 (200-day SMA) before $1,785 (100-day SMA) and $1,770 (Fibonacci 61.8% retracement).”