Gold price is accelerating its upbeat momentum, finally yielding a firm break above the $1800 mark, as it refreshes three-week highs. The persistent downbeat mood around the US dollar continues to bode well for the USD-denominated gold price.
Gold Price Yields A Break Above $1800
Gold prices battle 100-SMA after crossing a 12-day-old resistance line the previous day. The yellow metal’s reluctance to pierce the key SMA could be traced to the peaking Momentum line. However, bulls may follow MACD signals to remain hopeful unless the quote drops back below the previous resistance line near $1,787.
Following that, $1,773 and the $1,773 levels may entertain short-term sellers ahead of directing them to June’s low around $1,750. With the US markets’ extended weekend restricting clues to stretch Friday’s optimism, post US jobs report, gold traders await initial full market reactions to the latest catalysts to keep the gold buyers hopeful.
On a different page, OPEC+’s indecision over the crude output cut leads to sustained restrictions ahead of the next meeting, which in turn lends indirect support to the gold prices. Amid these plays, S&P 500 Futures stay mildly bid around the record top while the US 10-year Treasury yields lick their wounds around 1.43% by the press time.
Moving on, US ISM Services PMI for June, expected 63.5 versus 64.0 prior, will be crucial as gold buyers seek further deterioration of the factors supporting the Fed’s rate hike moves ahead of Wednesday’s FOMC minutes.