Spot Gold Gears Up for Multi-Week Bullish Run

Following a minor downturn, Spot Gold (XAU/USD) appears to have halted its corrective pull-back, indicating the potential start of a sustained bullish period. The minor decline observed from 27 October to 13 November, which saw a 3.8% drop, is seemingly concluding, setting the stage for a new multi-week rise.

Decline in US Treasury Yields Favors Gold

The decline in the 10-year US Treasury real yield, which slid about 50 basis points from its October peak, suggests a less attractive yield environment, thereby enhancing the appeal of non-yielding assets like gold. The trend supports the narrative that gold's attractiveness may rise as the cost of holding the precious metal decreases relative to interest-bearing assets.

Technical Indicators Show Bullish Signals for Gold

Technical analyses and market movements indicate that gold might be gearing up for a significant rally. With key support standing firm at US$1,972, the precious metal's value bounced back robustly after touching support levels. A weekly bullish candlestick and recovering daily RSI momentum hint at shifting market sentiment and the possible end to gold's recent corrective phase.

Gold's Price Resistance and Support Levels

Spot Gold's momentum remains critical, with its ability to maintain support at US$1,972 acting as an essential indicator of a continued bullish trend. A breach here could signal a bearish turn, possibly leading to a retest of intermediate supports. Alternatively, holding this level points to rising resistances, potentially challenging previous highs and setting new benchmarks.

Gold, Bullish, Yields