Gold Closes Higher On Us Data

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Gold Closes Higher On Us Data

Gold (Xau/Usd) Closes Above $2700

Gold (XAU/USD) is sitting comfortably at a 2-week high amid a drop in T-Bond yields. Geopolitics remains the dominant theme in the Gold (XAU/USD), while the data from the USA was also mostly positive.

The positive US data has capped the advance of Gold (XAU/USD) for now. The Gold (XAU/USD) is seen trading near $2710 with a gain of 1.50% which is very impressive.

10y Bond Yields Near 4.40%

However, the key theme here is the decline in the US bond yields, which has allowed the yellow metal to shine. The 10-Y bond yields are near 4.40%, with a decline of 0.02%. This was welcomed by the Gold, which is already set to end the week with 5% or more gains.

The Russia-Ukraine issue also remains a key reason for the higher price of Gold (XAU/USD). If the geopolitical tensions remain high, there's a good chance that the Gold (XAU/USD) will hit $2790.

If we look at the data releases, the Flash PMI by SP Global for November was released. The overall numbers showed a picture of expansion and also exceeded the previous month's readings.

However, the reading of manufacturing PMI showed a reading below 50, which is a sign of contraction. Meanwhile, the UoM's Consumer Sentiment index also showed an improved reading.

The survey also showed that the Federal Reserve is expected to achieve the 2% inflation goal during the next 12 months.

Now, the next target for the Gold (XAU/USD) is set at $2750, while the nearest support is $2663, where the 50 SMA is present. A break fo the $2750 will invite more buyers in the Gold (XAU/USD).

In fact, sustained trading above $2750 means the next target will be $2790 and $2800. A break of these levels will open the doors for the $3000 level.

According to Goldman Sachs, the $3000 will be a key resistance for the Gold (XAU/USD) thus very difficult to breach. But, it would be too soon to forecast the $3K as the next bullish target for Gold.

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