WILL GOLD PRICE RISE FURTHER?

Ounce Gold prices, which have spent the past week with a remarkable upward movement, had a slight thaw on the last trading day of the week. In particular, U.S. President Joe Biden's announcement that he plans to raise taxes on the wealthy people has caused devaluation on the index side. Tax reform would increase taxes on capital gains for those earning more than $1 million, increasing the tax rate from 20% to 39.6%. However, following the Manufacturing and Services PMI figures released above expectations in the US, we saw the indices finish the week with more buyers. This, has led to renewed risk appetite in the markets, while the sudden rises in Ounce Gold have been somewhat interrupted. The U.S. Manufacturing PMI for April was slightly above expectations at 60.6, while the Service sector PMI rose significantly to 63.1. U.S. new home sales rose 20.7% in March, exceeding expectations. Despite this positive data, Biden's new tax policy supports the weak dollar scenario, and the precious metal continues to maintain its rising trend. 

Durable goods orders data, which fell sharply in February on the first trading day of the week, rose 0.5% despite the stimulus package that came into effect in March, falling short of expectations. Following these developments, we see that the weak dollar scenario continues to be maintained, with US 10-year bond yields at 1.57%.  

Following these developments, it can be expected that the rise of the precious metal will continue within the framework of resistance levels of 1815 and 1836 as it climbs above the 1790 level. However, a possible 1765 support follows the continuation of the declines in the six closings within the framework of the support thresholds of 1745 and 1725.