Gold extends gains to 1%, buyers look to hold a break above the $1,700 level

Technical Analysis

Author: Justin Low | gold

Gold is up by 1%, testing waters above the key hourly moving averages

Gold H1 22-04
The dollar is continuing to stay weaker on the session as gold races to a high around $1,704, going in search of a firm break above the key hourly moving averages.

If buyers are able to maintain a break above the 200-hour MA (blue line) and $1,700, it would set up a good platform for gold to try and contest the highs seen last week.

For now, gold is benefiting from the reduced volatility as stocks are moving higher. US futures are up by 1.4%, with European indices also seeing gains of over 1% thus far.

Over to Treasuries, 10-year yields are now up by 1.5 bps to 0.585% so at least the bond market is also playing ball with the recent shift in the risk narrative today.

It's baby steps for buyers but keeping a break above the key levels mentioned above will be a good first step to building on a further upside move in the sessions ahead.
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