Gold Price Forecast: XAU/USD refreshes seven-month highs above $1,860 amid falling yields

• Gold price hits fresh seven-month highs above $1,860 in European trading.
• The US Treasury yields decline, risk-on mood smash the US Dollar.
• Sell-off in the US Treasury yields cap the downside in the Gold price.

Gold price is holding close to the highest level in seven months above $1,860 in the Europen session, accelerating the upbeat momentum, as the US Dollar tumbled across the board following a hot start to 2023.

The US Dollar remains under heavy selling pressure, as the European equities opened higher. Further, the sell-off in the US Treasury bond yields gathered steam and exacerbated the pain in the greenback, allowing the non-yielding Gold price to extend its uptrend into the fourth straight session.

Markets continue to adjust their positions in the first week of this year, gearing up for the first top-tier US economic events release due later this Wednesday. The US ISM Manufacturing PMI and the US Federal Reserve (Fed) Minutes will be closely scrutinized for the Fed’s future policy path, which will significantly influence the US Dollar and the USD-sensitive yellow metal.

The fresh upsurge in the Gold price could be also attributed to the big technical breakout on the daily chart. Gold price confirmed an upside from the ascending triangle on Tuesday. The price closed Tuesday above the horizontal trendline (triangle) resistance at $1,825.

Gold price: Daily chart

Gold price: Technical level to watch