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Gold Finally Surges Through $1,800 Level With Yields Under Pressure

Updated: 6 May 2021

Gold has climbed to its highest level since late February after finally breaking through the $1,800 mark on Thursday.

The yellow metal had threatened to break the psychological level several times in the past couple of weeks but was thwarted at every opportunity…until today.

It was a case of perseverance pays for gold bulls. With US Treasury yields coming under further pressure, gold seized its opportunity.

The US 10 year yield was hovering above 1.57% before gold made its break. It is now sitting at 1.56%.

Gold is now trading around the $1,812 level after smashing through $1,800, but up until early March, it had been trending lower, with yields climbing from around August 2020.

XAUUSD_chart
Source: IG

Looking at the chart, a likely daily close above $1,800 will see gold continue to gain in the near term, especially with the USD weakness. Thus, momentum remains to the upside, but it's not exactly a clear run higher, and, as always, US yields will play a significant factor in its trajectory.

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