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Gold holds above $4,380 after resistance at $4,450
DBS said reassessments of the Fed outlook and worries about the US fiscal position are eroding the dollar’s traditional yield advantage for now.
Gold prices on Thursday edged lower but remained just above prior highs around $4,380, after running into resistance near the $4,450 area, according to FXStreet.
The outlet linked the move to the recent release of moderate US CPI data, which boosted pressure on front-end US Treasury yields and the US dollar, supporting demand for precious metals.
FXStreet also cited DBS guidance that the Fed policy outlook is being reassessed, adding that America’s weakened fiscal position could be weighing on the yield appeal of US bonds that typically supports the dollar.
On the technical side, FXStreet said gold is consolidating after reaching heavily overbought conditions, with 4-hour RSI retreating to 58.81 and MACD drifting just below zero, while noting resistance around $4,450 and potential downside if prices break below the $4,360 area.
Latest closeGold $4,467.10 ▲1.9%