Gold prices have been ripping higher recently since putting in a
potential double-bottom pattern around $1,680/oz. In fact, the precious
metal now trades at an eight-week high following a 7% climb off its 30
March swing low. A pullback in the US Dollar and real yields seem to be
benefiting gold outlook and motivating the rebound being staged by
XAU/USD price action.To get more news about [url=https://www.wikifx.com/za_en/]WikiFX[/url], you can visit wikifx.com official website.



　　As shown on the chart above, the price of gold tends to mirror
(i.e. move in the opposite direction) of real yields. Due to this strong
inverse relationship, the broader direction of real yields continues to
stand out as one of the dominant fundamental catalysts weighing on gold
prices. Correspondingly, if real yields struggle to regain upward
momentum, there could be potential for XAU/USD to extend its rebound.



Shifting focus to a technical perspective, how the precious metal
finishes the week could prove quite telling of where gold prices trend
next. A close above the 20-week simple moving average, which just so
happens to underpin a big area of technical confluence around the
$1,790-price level, might be followed by continuation higher and a
bullish MACD crossover. The 38.2% Fibonacci retracement of its August
2020 to March 2021 trading range likely comes into focus under this
scenario.



　　Surmounting this technical barrier has potential to motivate a
larger rebound toward the upper descending trendline of golds
eight-month long bull flag pattern. On the other hand, if gold bulls
fail to maintain their upper hand and this technical barrier near the
psychologically-significant $1,800-handle is rejected, the precious
metal might recoil back toward its bottom Bollinger Band and
year-to-date lows.