Gold price is looking to build on the previous rally above $1,850 as bulls gather pace for the next push higher. However, the bright metal is struggling to find new demand as investors turn cautious and flock to safety in the US Dollar. Meanwhile, the US Treasury bond yields are holding near weekly lows, limiting any downside for Gold buyers. The US Dollar incurred steep losses on Wednesday as the mixed US ISM Manufacturing PMI data and US Federal Reserve (Fed) Minutes failed to impress.
Even though the Fed Minutes showed that the officials are committed to fighting inflation and expect higher interest rates to remain in place, markets continue pricing a dovish Fed pivot by the end of 2023 as recession risks amplify. Accordingly, attention now turns toward the US employment data, as it will provide further insight into the Fed’s policy path this year.
Gold Price: Key levels to watch
- The gold price is challenging the bullish commitments at $1,854.
- The last line of defence for Gold buyers is at the Bollinger Band one-day Upper at $1,845.
- The next upside target is at the $1,860 round number.
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