Gold price gains positive traction for the sixth straight day and refreshes its multi-month top.
Dovish Fed expectations, falling US bond yields and a bearish USD continue to lend support.
The overbought RSI on the daily chart warrants caution before placing fresh bullish bets.
Gold price (XAU/USD) builds on this week’s breakout momentum through the $2,008-2,010 horizontal barrier and scales higher for the fifth successive day on Wednesday.
This also marks the sixth day of a positive move in the previous seven and lifts the commodity to a near seven-month peak, around the $2,052 area during the Asian session.
The near-term outlook for the precious metal, meanwhile, remains bullish in the wake of the prevalent US Dollar (USD) selling bias, fuelled by dovish Federal Reserve (Fed) expectations.
Investors now seem convinced that the Fed will no longer raise interest rates.
Moreover, the implied Fed funds futures suggest roughly 85 bps of cumulative interest rate cuts by December 2024, which, along with the underwhelming US bond auction on Tuesday, leads to a further decline in the US Treasury bond yields. In fact, the yield on the benchmark 10-year US government bond fell to 4.274%, or its lowest level since mid-September, dragging the USD to its lowest level since August 11 and boosting demand for the non-yielding Gold price.
Source: Fxstreet
