Gold, find support from the key 1765 level again that we talked about in our early analysis and surge to 1815. Bitcoin sell-off and Powell’s assurance of continuing support help the bullion to gain a bit of momentum against selling pressures. But if gold continues its advance, the price must break the 1840-1850 zone. As long as XAUUSD stays below that zone, upward pressures will fade. 1765 is a key long and medium-term support level and will be the key for future direction. Below this support gold bulls should be careful.
ETFs’ still holding a historic level of gold but holdings have been decreasing since November. If this trend continues, it will pressure the price of Gold for further increase. The last time this chart turned flat in December, gold surge from 1765 to 1950 just over a month.
Gold is moving highly correlated with 10-year Breakeven and 10-Year Treasury Rate difference because Gold is a safe haven against inflation but affected negatively from the surging treasury rates. Powell’s assurance of supporting the economy has caused the 10-year rate to steady a little and this is helping gold to stay above for now. But if markets really convinced or just taking a little breather, we will see in the near future.