GOLD PRICE FORECAST: NEUTRAL
Gold has recovered slightly after falling to its lowest level since June in early March
Profits have slowed, however, as yields have cooled and US Dollar power has emerged
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GOLD WEEKLY PRICE FORECAST: XAU CAUGHT BETWEEN TREASURY YIELDS AND USD
Gold has endured from directionless cost action in the previous two weeks after mounting a comeback rally from the 1675 area earlier this March. Since the Federal Reserve reiterated its accommodative policy path in the March Fed meeting, it can be argued little has changed in the fundamental landscape over the span. With that in mind, the precious yellow metal is captured between varying Treasury returns and US Dollar cost trends.
Last week, US Treasury yields saw their ascent slow giving short respite to gold since investors were previously shying away from gold exposure amid increasing yields. Nevertheless, weakness in US Treasurys was combated by appreciable strength in america Dollar which worked to curb gains for its Dollar-denominated commodity.
GOLD PRICE & US DOLLAR BASKET (DXY) (JANUARY 2017 — MARCH 2021)
With gold apparently at the mercy of different markets, gold traders may look to US Dollar analysis for further insight. As it stands, the Greenback is on the verge of, or has already endeavored on, quite a few bullish breakouts that could suggest further Dollar strength is forward which might render gold grasping for assistance. Meanwhile, follow @PeterHanksFX on Twitter for upgrades and evaluation.
