• Gold Price remains supported above 21-DMA, with eyes on $1,870.
• Risk-on flows down the dollar alongside the yields, favor XAUUSD bulls.
• US ADP jobs beat may revive aggressive Fed tightening bets, cap gold’s rebound.

Gold Price is building on the previous rebound from ten-day lows of $1,829, as bulls remain in total control in the European session.

The European markets find some comfort from the retreat in oil prices, amid hopes for a concerted effort to increase supply, which has helped lift the overall market mood and trigger a fresh bout of broad US dollar sell-off.

The US Treasury yields are also on a retreat across the curve, adding to the downside in the greenback. The pullback in the US rates could be associated with the profit-taking slide after the benchmark 10-year US yields faced rejection just below the key 3% level.

The bright metal also continues to benefit from the persistent concerns over surging inflation globally, which could temper the economic outlook. Further, the renewed US-Sino trade concerns and the ongoing Russia-Ukraine crisis keep the sentiment around the traditional safe-haven buoyed.

Gold traders now look forward to the US ADP Jobs data for fresh dollar valuations. A print above the expected 300K figure in May could bring the aggressive Fed tightening expectations back to the fore, which could check the renewed upside in the bullion.

The main event risk this week, however, remains the May month US Nonfarm Payrolls data, which will be eagerly waited for the next direction in the USD-priced metal.

Gold Price: Daily chart

The next key resistance level is seen at $1,860, which is the descending trendline hurdle. A firm break above the latter will call for a retest of the previous week’s high of $1,870.

Also read: Gold Price Forecast: XAUUSD in search of a clear direction, awaits NFP

The 14-day Relative Strength Index (RSI) is sitting just beneath the midline, suggesting that recovery attempts are likely to remain shallow and sellers could jump in on the bounce.    

A breach of the 21-DMA at $1,845 once again will expose the 200-DMA support of $1,841, below which the previous day’s low of $1,829 will be put to test.

Gold Price: Additional levels to consider