Gold prices climbed on Friday, lifted by a dip in Treasury yields, which enhanced the metal's relative appeal. However, the rally was insufficient to offset a weekly decline driven by a robust U.S. dollar. The dollar's surge to a two-week high has weighed on gold throughout the week, overshadowing short-term yield-driven gains. While the technical structure remains cautiously bullish above key moving averages and support zones, analysts view the intraday rebound skeptically, noting that sustained recovery will require either a weaker dollar or a more meaningful drop in yields. Traders are now watching for a breakout from the current consolidation, which could lead to increased volatility.
Major Points :
Gold rebounded intraday Friday, rising over 2% as Treasury yields softened, easing pressure on the non-yielding metal.
Despite the daily gain, gold is set for a second straight weekly loss due to persistent U.S. dollar strength.
The dollar index is near a two-week high and posted its strongest weekly gain since mid-November, making gold more expensive for foreign buyers and capping rallies.
Technically, the daily trend remains bullish above key support at $4,402.38. A move above $5,091.93 would signal renewed momentum.
Critical support levels to watch:
50-day moving average at $4,544.33
Retracement zone between $4,744.34 and $4,541.88
The longer gold consolidates in this range, the stronger the eventual breakout is expected to be.
Analysts caution the Friday bounce may be temporary—seen as a “dead cat bounce”—unless the dollar weakens or yields fall more substantially.
