Gold price forecast: XAU /USD

Gold (XAU/USD) is retreating from five-week highs, as the US dollar finds its feet amid a downbeat market mood. Growing concerns over the covid surge and vaccine side-effects dent the risk sentiment, lifting the haven demand for the greenback. Stronger US jobs data also continue to buoy the dollar.

Meanwhile, the US Treasury yields are stabilizing after a dovish blow from the FOMC minutes and Fed Chair Powell’s comments. Looking ahead the dynamics in the yields and dollar will continue to have a significant influence on gold prices.