James Hyerczyk
Add to Bookmarks

Gold futures are trading at their highest level since February 25 and threatening to break out over a major retracement level at $1788.50 shortly before the New York opening on Monday. After seeing early selling pressure at the start of the week, the precious metal stabilized then surged to the upside in an attempt to reestablish the fresh uptrend.

At 10:43 GMT, June Comex Gold is trading $1787.20, up $7.00 or +0.39%.

Know where Gold is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Today’s rally is being fueled by a dip in U.S. Treasury yields and a plunge in the U.S. Dollar against a basket of major currencies. Additionally, now that the technical double-bottom has been confirmed, we’re starting to see more speculative interest from trend and momentum traders. The overall bullish theme, however, is being driven by investors buying into the idea that the Fed will maintain an accommodative monetary policy for a long time and that any spike in economic growth, especially inflation, will be “transitory”.

In other news, speculators cut their bullish positions in COMEX gold and raised them in silver contracts in the week to April 13, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

Treasury Yields Start the Week Lower as Retreat Continues

U.S. Treasury yields ebbed lower on Monday morning, continuing to fall from recent highs. The yield on the benchmark 10-year Treasury note fell to 1.564% at 08:15 GMT. The yield on the 30-year Treasury bond dipped to 2.253%, CNBC reported.

The drop in Treasury yields drove the U.S. Dollar Index into its lowest level since March 3 as the heavy selling pressure threatened to trigger an acceleration to the downside. A weaker U.S. Dollar tends to drive up foreign demand for dollar-denominated gold.


Daily Forecast

With Treasury yields and the U.S. Dollar seemingly positioned to accelerate to the downside, gold sits in a similar position, but poised to breakout above the $1788.50 resistance level with the next target price $1817.60.

The direction of prices the rest of the session on Monday should be determined by trader reaction to $1788.50.

For a look at all of today’s economic events, check out our economic calendar.
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker