- Metals bounce, trying to leave weakness behind.
- XAU/USD climbs more than $20 from the low of $1811.
- Markets attentive to Powell and Lagarde.
After a strong rebound, gold went from two-week lows to daily highs. XAU/USD bottomed at $1811 in European hours and then started a rebound that gained intensity. It recently reached as high as $1,833, the highest level in two days.
The precious metal has not yet been confirmed above $1830 and faces a setbackin a complicated context to extend the increases, with a strong dollar and pessimism in the equity markets.
Treasury yields are flat on Wednesday for now. Should safe-haven demand intensify, a rally in bonds could support gold.
The president of the Fed from Portugal stated that the shape of the yield curve is not one of the main concerns at the moment, and stated that they are focused on inflation.
In the US, a downward revision was known in the contraction of the GDP in the first quarter from -1.5% to -1.6%. The personal income and spending report, which includes the underlying index of personal consumption spending, will be published on Thursday.
Looking at the bear line
Gold faces a short-term downtrend line around $1,835 which, if breached, would leave the metal ripe for further gains, with an immediate target of $1,840 and then the $1,850 zone.
Failing to break the uptrend and return below $1,815 would expose the day’s lows and below that the next support emerges at $1,805, before the May low of $1,786.
Source: Fx Street
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