Gold Price Rises as US Treasury Bond Yields Depress Greenback Amid Debt Ceiling Concerns
GOLD prices are rising due to concerns that the US’ debt limit may be reached in June. The political intrigue leading up to this event keeps traders alert and causes them to be risk-averse, increasing market for 1-month US Treasury bond yields. In keeping with this, the US Federal Reserve (Fed) may undertake a final 0.25% rate hike in the month of May before indicating a policy shift.
Gold Price Technical Analysis
With these variables in mind, the precious metal is primed for further advances, with a potential monthly high of over $2,049 in sight.
GOLD sellers would need confirmation from the five-week-old ascending support line to reclaim control, which was around $1,980 at the time of writing. If the XAU/USD price falls below this level, bears may focus on the 200-bar SMA at $1,966 and the late March low under $1,935.
It is vital to note that if the XAU/USD price falls below $1,935, it may soon fall towards the 61.8% Fibonacci retracement of its March-April uptrend, which is near the $1,900 mark.
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