Gold Price Analysis: XAU/USD hits fresh daily highs but fails to break $1950

• Gold turns positive for the day after spending most of the day in a consolidation range.
• US Dollar moves of lows, helping the resistance area at $1950.

Gold prices broke a tight range and climbed to $1,950.65/oz, reaching the highest level in two days. The yellow metal so far failed to make a run above $1950 as the area continues to limit the upside. A weaker US dollar across the board is supporting the move higher.

The US Dollar Index is falling 0.35%, off lows. Earlier the DXY bottomed at 92.94 but it was rejected from below 93.00. The greenback has not been able to benefit from US economic data, neither from higher US yields.

Initial jobless claims dropped below 1 million for the first time in 21 weeks, showing numbers below market consensus. Also, continuing claims fell more than expected. A positive sign for claims that resumed the downtrend after weeks of consolidation. Regarding yields, the US 10-year reached at 0.69% the highest level in a month.

The rebound from lows capped the upside in gold that continues to trade near but below the $1950 area. A break higher should clear the way to more gains. On the flip side, immediate support is seen at $1935 followed by the lower limit of today’s range at $1920 and then the $1905 area.