Gold looking forward to $1770

Gold trades at $1768 per ounce at the time of writing. The Gold Index rebounds after hitting a fresh low, at the same time, US yields erase earlier gains, back near recent lows. Gold prices benefited from Friday’s weaker US dollar during the American session.

Gold continues to shine as it shows the latest rebound. XAU/USD printed a fresh daily low during the American session at $1751, but only to rebound more than $10 in a few minutes, rising back above $1760. The outlook remains positive for the metal that is trading near the $1770 resistance area.

The decline in US yields after the FOMC meeting triggered more gains in XAUUSD. Even after US economic data released on Friday showed a still strong consumer and high inflation, the demand for Treasuries held firm. The US 10-year yield stands at 2.65%, and the 30-year is back under 3.00%.

Technically; gold is about to post the second weekly gain in a row, with the best performance in months. What it started as a correction, after falling to test the critical support around 1675$, it has become a strong rally that could add to gains if the price holds above $1750.