Gold prices rebound after higher yields facilitated the lowest levels since June

Gold prices are trading moderately in the green this week after a series of negative weekly performances and the price recovery in the U.S. Treasury yields and the dollar index weighed on the bullion, sending it towards a 9-month low. 

Fundamental analysis: Higher rates hurting gold

U.S. Treasury yields rallied towards a more than one-year high on March 5 and the dollar recovered some ground after hitting a 1-week low recently. 

United States President Joe Biden signed a $1.9 trillion stimulus bill on Thursday and said he is looking to boost coronavirus vaccinations in a bid to facilitate recovery before July 4. On the other hand, investors are keeping a close eye on the upcoming Fed meeting next week when the central bank will discuss its further monetary policy plans. 

It was reported yesterday that Polish Central Bank wants to buy gold over the next couple of years. 

“At the moment, we have 229 tonnes of gold, of which more or less half was bought during my term in office. Over the course of a few years we want to buy at least another 100 tonnes of gold and keep it in Poland as well,” he said. 

Technical analysis: Approaching intraweekly resistance

Gold prices have rebounded to trade above $1,700 an ounce again. The last week’s low of $1,676.91 an ounce is the lowest gold prices traded since June last year. A reversal in the price action last week saw gold prices rally from these laws to close the week 1.67% higher.

Gold buyers are now pushing the price action towards the intraweekly resistance line at $1,765 an ounce. On the downside, the monthly support is defined by the 100-MMA at $1,653 an ounce.

Summary

Gold prices are recovering after a rebound in U.S Treasury yields and the dollar index hurt the prices of the yellow metal.