Is gold price prepping for a major move higher next week?

The precious metal is wrapping up its second consecutive week of gains after a positive start to Q2 amid a weaker U.S.

All of that has driven gold to the upside,” TD Securities head of global strategy Bart Melek told Kitco News.

We had so much pressure from the Federal Reserve and the European Central Bank trying to ease tensions in the yields, and it worked.

“The greenback’s support has been eroded with 10-year Treasury yields moving below the psychologically important 1.60% mark, which in turn has allowed spot gold to break above its 50-day simple moving average for the first time since early February,” Tan said.

data and the Fed in blackout period could favor a continuation of benign market trends and a slightly weaker USD,” the ING strategists wrote.

Also, global economic concerns are playing a role as some countries who don’t have a robust vaccine deployment plan could have a negative impact on the global recovery,” he said.

The Fed is saying that any inflation will likely be transitory due to base effects, while the market might start to worry that they are behind the curve.

“The ECB will look through any temporary increases in headline inflation and will not tolerate significant moves in bond yields unless they are the result of improved growth prospects.

“There is little sign of bi-partisanship on the $2tn package, and it seems that the Democrats are going to push it through the reconciliation process to avoid the need for 60 Senators to agree to put it to a vote.

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