Gold price has managed to edge higher toward $1,970 amid broad US Dollar weakness on Thursday but failed to preserve its bullish momentum. The benchmark 10-year US Treasury bond yield gained traction and rose toward 3.6% after US data, limiting XAU/USD's upside.

XAU/USD may be snailing along little-changed in the short term, but it is still in an uptrend when looked at from a distance, adopting a medium-term perspective. The price of the precious metal continues to make higher highs and lows on the daily chart that show an uptrend is in play. Thus, according to the market maxim, “The trend is your friend until the bend at the end,” the technical outlook favors bulls.
A break above the key $2,009 March top would provide confirmation of further upside. The next target for Gold price would then lie at the $2,070 March 2022 highs.

The key $1,934 March 22 swing low must hold for Gold bulls to retain the advantage. Yet, a break and close on a daily basis below that level would introduce doubt into the overall bullish assessment of the trend. Such a move would probably see a sharp decline to support at $1,990 supplied by the 50-day Simple Moving Average (SMA).

There is a suggestion Gold price may be forming a triangle pattern as it oscillates to-and-fro between a limited range, and a closer inspection of the pattern on lower timeframes may offer traders opportunities to enter breakout trades at more daring levels than the broader range parameters highlighted above.

Gold is bearish below $2009

Mar 30 2023