Spot gold consolidates near 7-week highs as the U.S. dollar idles

April 21, 2021 - 4 weeks ago
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The precious yellow metal failed to stage any significant moves on Tuesday as prices hover near a seven-week peak struck earlier this week, as a weaker greenback and a retreat in U.S. Treasury yields help lifted demand for the safe-haven metal.

The US Dollar index slipped -0.1% against its rivals after touching a near seven-week low in the previous session before rebounding from 90.80 to 91.16 (as of writing).

The 10-year U.S. Treasury yield edged down to 1.562% from 1.599% on Monday in the bond market. Yields fall as prices rise.

The yield, which has climbed from about 0.9% since the start of the year, influences borrowing costs worldwide and is highly sensitive to expectations about the central bank’s future interest rate decisions.

Since reaching its target at $1,760-65, the bullish momentum remains on a potential bullish path to $1,802-08. Reassess from there.

The support is located at $1,760-62, to which a close beneath this level would question the upside target is achievable.

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