XAUUSD is moving higher on the back of the weakening US dollar. However, into the end of trading Friday, the US10 year yields started to rise, as traders sold Bonds and bought equities.
The rising yields will keep the price of Gold capped, so during next week it is crucial that Bonds get bought, the US dollar gets continually sold, and that we get XAUUSD above 1850. Otherwise, the 3rd test of the descending trend line will be the first roadblock and Gold will come back into the $1700-$1800 trading range.
There is also a double bottom now at $1680-$1690 so a good target for anyone looking to take liquidity.
Targets to the upside include a measured move to $2250
US yields are key for the direction of gold as is the continuation of a weaker US dollar.
The rising yields will keep the price of Gold capped, so during next week it is crucial that Bonds get bought, the US dollar gets continually sold, and that we get XAUUSD above 1850. Otherwise, the 3rd test of the descending trend line will be the first roadblock and Gold will come back into the $1700-$1800 trading range.
There is also a double bottom now at $1680-$1690 so a good target for anyone looking to take liquidity.
Targets to the upside include a measured move to $2250
US yields are key for the direction of gold as is the continuation of a weaker US dollar.
