Gold Price Analysis: XAU/USD Hits Fresh Two-Month Highs Near $1790 As US Dollar Tumbles

Gold (XAU/USD) is extending its three-day upbeat momentum into Monday, as the bulls clinch fresh two-month highs near $1790, fast approaching the $1800 mark.

The acceleration of the selling pressure in the US dollar in the European morning fuelled another leg up in the yellow metal. The US dollar index tumbles to fresh seven-week lows of 91.17, down 0.40% on the day.

Gold, Ingots, Treasure, Bullion, Gold Bars, Wealth

Image Source: Pixabay

The greenback remains heavily offered across the board, thanks to the risk-on market mood, spurred by optimism over higher vaccination rates in Europe, the UK and the US. Successful vaccine rollouts suggest a faster global economic recovery, weighing down on the safe-haven dollar.

Further, the weakness in the US Treasury yields, in the wake of dovish Fed expectations, also collaborates with the bearish tone in the buck.

The precious metal also draws support from the reports that China has granted permission to its domestic and international banks to import large amounts of gold into the country. Additionally, a favorable technical setup also backs the renewed uptick in gold.

Looking ahead, the US dollar price action and broad market sentiment will lead the way for gold traders, especially, in absence of relevant economic news from the US.

Gold: Technical levels



Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.