Gold Price Forecast: XAU/EUR struggles around €1595 as German bund yields rise

• Gold vs. the euro advances some 0.01% as the Thursday Asian session begins.
• XAU/EUR Price Forecast: Bullish-biased though it faces strong resistance around the €1,595-1,600 area.

Gold (XAU/EUR) vs. the euro advances as the New York session ends, trading at €1,592 at the time of writing. During the New York session, the market sentiment was upbeat, spurred in part by good news on the Covid-19 Omicron-variant front. South Africa continues reporting positive news, which according to a study, 80% of the people infected by the newly discovered strain did not need hospitalizations. Furthermore, in the mid-American session, the US Food and Drug Administration (FDA) approved the use of a Pfizer pill, a treatment for the coronavirus, that could be used to treat high-risk patients.

Apart from that, the German 10-year bund yield rises three basis points, from -0.314% to -0.289%, a headwind for the yellow-metal throughout Wednesday's session.

In the meantime, the precious metals segment, XAU/USD, rose to $1,803, while silver failed to cling to the $23.00 threshold, trading at $22.84.

XAU/EUR Price Forecast: Technical outlook

The XAU/EUR daily chart depicts that the non-yielding metal is upward biased, as shown by the daily moving averages (DMAs) residing below the spot price. Further, in the last 17 days, gold has been seesawing around Andrew Pitchfork’s uptrend-channel mid-line, at press time resistance, while the 50-DMA at €1,576 acted as support.

To the upside, the first resistance level is the Pitchfork’s mid-line at €1,595. A breach of the latter would leave December’s 20 daily high at 1603.40, followed by November’s 23 cycle high at €1,612.28.

On the downside, the first support would be the 50-DMA at €1,576. A decisive break of the 50-DMA leaves gold bulls leaning on December’s 15 pivot low at €1,558.32, followed by December’s two cycle low at €1,555.31.