• The gold price leaked lower against rising government bond yields
  • The PBOC tilted policy and now the BoE moves into view after UK CPI data
  • The US Dollar might hold the key for XAU/USD in what is a busy week for markets

The gold price is struggling on Tuesday with the US Dollar currying some favour despite the US being on holiday Monday.

While the main Wall Street indices were closed, the Treasury cash market is open, and yields have managed to tick higher across the curve.

The higher rates of return appeared to underpin the ‘big dollar’ but most other developed market government bond yields also got a boost.


Gold’s recent dip below an ascending trend line has not been a convincing break. Support levels in the 1936 – 1945 area have held so far and might continue to do so.

Last Thursday’s low of 1936 has set up a potential Double Bottom that coincides with a previous low. The potential Double Bottom could be confirmed should it move above the neckline at 2000.

The push lower went under the 100-day Simple Moving Average (SMA) but the daily close was back above it.

This may suggest that recent bearishness could have been rejected by the market for now.

A clean break below that area may see a bearish run evolve, and the next support zone of note could be at the next Double Bottom of 1811 and 1813.


If gold gets above the 55-day SMA, currently sitting just under 2000, it will be above all period daily SMAs, which may suggest that bullish momentum is evolving.

If it does break above 2000, it could run for a potential resistance zone ahead of the all-time high.

The early May high of 2085 eclipsed the March 2022 peak of 2079 but was unable to overcome the all-time high of 2089. This failure to break new ground to the upside has created a Triple Top which is an extension of a Double Top formation.

This has set up a potential resistance zone in the 2080 – 2090 area but a snap above those levels may indicate further unfolding bullishness.