Gold Price Analysis: XAU/USD rebounds and prints a new multi-year high above $1890
|- The US dollar weakened again and helped XAU/USD rise toward new highs.
- Gold’s bullish momentum remains intact despite overbought readings.
The rebound of the US dollar was short-lived and near the London fix it resumed the decline, sending XAU/USD to $1,891/oz, the new cycle high. The yellow metal is hovering around $1,890, levels last seen back in 2011.
The US Dollar Index (DXY) turned again to the downside and printed a fresh four-month low below 94.80. It is falling by 0.20% and is about to test the 2020 intraday low reached on March 9 at 94.65. If it breaks below that level, it would be trading at the lowest since September 2018. The demand for gold is receiving an extra impulse from a weaker US dollar.
Gold is extending the bullish trend that remains intact, with no signs of a correction. Above $1,890, a test of $1,900 seems likely. Volatility could rise if the mentioned level is reached. Above, the next target would be the all-time high near $1,920.
XAU/USD is extending gains despite the pullback in other commodities. Silver (XAG/USD) is falling 0.40%, after being rejected from above 23.00, but it is moving off lows.
Gold levels
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