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. The dollar bears the brunt of the uncertainty over the US Federal Reserve’s (Fed) next monetary policy move, especially in light of an NFP beat and a rise in the Unemployment rate to 5.9% in June.
Meanwhile, Euro area reopening optimism weighs on the dollar’s haven demand, adding to gold’s upside. Concerns over the delta covid variant flareups in Asia and its impact on the global economic recovery also continue to underpin gold’s safe-haven appeal.
Markets now await the US ISM Services PMI, with the focus on the inflation component for fresh US dollar valuation, which in turn, will have a significant impact on gold price. The ISM Services Prices Paid for June is expected to drop to 79.3 in June vs. 80.6 prior. On an upside surprise, the US dollar could attempt a rebound, although Wednesday’s FOMC minutes will be the key determinant of the near-term direction in the dollar as well as gold.
Gold: Technical Outlook
Daily closing above the 100-Daily Moving Average (DMA) at $1790 on Monday has reinforced the bullish commitments, with the bulls now target the bearish 21-DMA at $1809. To unleash additional upside, gold price needs acceptance above $1800, which would then confirm a bullish reversal from two-month troughs of $1751.
Gold Price Chart: Daily
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July 06, 2021 at 12:03PM
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Breaking: Gold price yields a break above $1800, focus shifts to US ISM - FXStreet
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