Gold Prices Rebound with Equity Market Optimism

Gold price (XAU/USD) builds on the previous day's bounce from the $1,970-1,969 region, or a one-week low and gains some follow-through traction on Thursday. The precious metal touched a fresh daily high during the first half of the European session, though remains below the $2,000 psychological mark. A generally positive tone around the equity markets is seen as a key factor acting as a headwind for the precious metal and warrants caution for bulls.

That said, declining US Treasury bond yields and the prevalent US Dollar (USD) selling bias, led by bets that the Federal Reserve (Fed) will not hike interest rates any further, might continue to act as a tailwind for the non-yielding gold price. Apart from this, the risk of a further escalation in the Israel-Hamas conflict, along with the worsening economic conditions in China, supports prospects for a further appreciating move for the safe-haven yellow metal.

Gold rejects the support level representing the last resistance level which is a solid historical level. The long trend is more bullish and solid to continue especially with Treasuries yields are down.

 

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
2040	2020	2006	1980	1947	1920