Gold Price Analysis: XAU/USD to rebound towards $1890 if US yields weaken

Gold has been stabilizing under $1880. XAU/USD is supported by weaker US yields but overbought conditions warrant caution, as FXStreet’s Dhwani Mehta notes.

Risk-on market mood overshadows the bearish undertone in the dollar and yields

“Investors cheer easing inflation fears and expectations of stronger global economic recovery, reflective of the 0.20% rise in the S&P 500 futures. However, it remains to be seen if the broader market optimism extends ahead of the key US CB Consumer Confidence data release.” 

“Looking ahead, if the selling in the US rates intensifies, gold price could rebound towards $1890.”

“A deeper pullback towards the $1850 psychological barrier cannot be ruled should the bulls fail to find acceptance above the critical $1890 static resistance.”

“If the $1890 hurdle is taken out convincingly, recapturing the $1900 mark remains inevitable. The next horizontal trendline resistance at $1918 could be on the buyers’ radars.”