Gold Recovery Facing Hurdle at $1755—$1765

Gold Price Forecast: The recent recovery in the precious metal (Yellow Metal) is facing its first key test on the topside with hurdle situated at $1755-$1765. While this may cap on its first approach, a break and close above $1765 would be very encouraging, opening the doors towards a move to $1810.

A lack of guidance from Fed Chair Powell overnight provided the impetus for Gold to extend recent gains, hitting a two-week high. Alongside this, while the Federal Reserve will continue to raise interest rates, there is a sense that maybe we have moved from peak hawkishness. In turn, this bodes well for gold, particularly on the back of increased recession risks.

Gold has been an unloved asset for much of the year and for good reason as real yields have increased notably. However, with the US 10Y real yield now down 50bps from the June peak, funds now net short, the outlook is much more encouraging for gold bugs.

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