Gold Price Higher on Weaker US Dollar

Gold is on the edge of an important bullish reversal, but it all depends on the Fed’s policy expectations. Technically, the bulls need to hang on above hourly support and break a daily H&S neckline.

US bond yields have slipped on expectations that the Federal Reserve will temper its aggressive rate-hike stance starting December which has enabled the precious metal to firm up within a broader bearish technical picture.

Gold price is higher by some 0.70% on the day as the US dollar continues to decline in a risk-on environment following the Bank of Canada’s dovish rate hike ahead of next week’s Federal Reserve interest rate decision.

At the time of writing, the Gold Index, XAU/USD is trading at $1,665.50 having moved between a low of $1,649.81 the low and $1,675.00 the high. The DXY, an index that measures the greenback vs. a basket of currencies is losing 1.00% on the day having dropped from a high of 111.135 to a low of 109.649.