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Gold Weekly Forecast: XAU/USD could target $1,800 if US T-bond yields push lowerANALYSIS |
4/16/2021 4:47:50 PM GMT
Gold registered its largest weekly gain of 2021.
XAU/USD could target $1,800 with a daily close above $1,785.
Gold continues to react to movements in US Treasury bond yields.
The XAU/USD pair spent the first half of the day in a relatively tight range below $1,750 but rose sharply on Thursday amid a steep decline witnessed in the US Treasury bond yields. Gold managed to preserve its bullish momentum ahead of the weekend and advanced to its highest level since late February at $1,783 on Friday. On a weekly basis, the precious metal posted its largest percentage gain since December, nearly 2%.
EUR/USD enjoyed another strong week and posted gains of 0.70%, coming close to the 1.20 level.
This week’s events are the ECB rate decision and PMIs.
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ere is an outlook at the highlights and an updated technical analysis for EUR/USD.
Eurozone Retail Sales rebounded in February with a sizzling gain of 3.0%. This marked a 7-month high. German ZEW Economic Sentiment underperformed, slipping from 76.6 to 70.7 in April. This was well off the estimate of 79.1. Eurozone CPI posted a gain of 1.3% in March, up from 0.9% a month earlier.
In the US, CPI rose in March, but the reaction of the US dollar was muted. Headline CPI climbed from 0.4% to 0.6% and Core CPI improved to 0.3%, up from 0.1%. Retail sales soared in March – headline retail sales came in at 9.8% and the core reading rose 8.4%, well above the forecast.
Apr 1, 2021 12:51 GMTFXStreet News
USD/CHF touched its highest level since July on Thursday.
US Dollar Index stays relatively quiet above 93.00.
Focus shifts to Markit and ISM Manufacturing PMI data from US.
Despite the broad-based selling pressure surrounding the greenback, the USD/CHF pair managed to close in the positive territory on Wednesday and continued to push higher on Thursday. After touching its highest level since July at 0.9473, however, the pair seems to have gone into a consolidation phase and was last seen gaining 0.18% on the day at 0.9451.
Focus shifts to US PMI data
The upbeat market mood made it difficult for the CHF to stay resilient against the USD and allowed USD/CHF to edge higher. Reflecting the risk-on environment, the S&P 500 Index notched a new all-time high at 3,994 on Wednesday. Furthermore, the 10-year US Treasury bond yield gained more than 2% and helped USD/CHF stay in the positive territory.