Gold Climbs Above $1700 As Rally Continues
- Gold is moving higher as dollar pulls back.
- Other precious metals also enjoy strong support.
- A move above the 50 EMA at $1710 will push gold towards the next resistance level at $1730.
Gold Gains More Ground After Yesterday’s Rally
Gold is trying to settle above the $1700 level as the strong rally in precious metals continues.
Weaker dollar and lower Treasury yields continue to provide support to precious metals. The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, declined below the 111.50 level and is moving towards the 20 EMA at 111.15. A move below the 20 EMA will push the U.S. Dollar Index towards the 111 level, which will be bullish for gold and other precious metals.
Meanwhile, the yield of 10-year Treasuries continues its attempts to settle below the 3.60% level. From a big picture point of view, we see a normal pullback after a huge rally from 2.60% to 4.00%. Traders will stay focused on the dynamics of Treasury yields as their rebound may put material pressure on gold.
Gold Must Settle Above The 50 EMA To Gain Additional Momentum
Gold managed to settle above the resistance at $1690 and is moving towards the next resistance level, which is located at the 50 EMA at $1710. In case gold settles above the 50 EMA, it will gain additional upside momentum and move towards the resistance at $1730.
A successful test of the resistance at $1730 will push gold towards the next resistance level at $1750. If gold climbs above $1750, it will head towards the resistance at $1765.
On the support side, the previous resistance at $1690 will serve as the first support level for gold. In case gold declines below this level, it will move towards the next support level at $1675. A successful test of this level will open the way to the test of the support at $1660.
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