- Gold rises for the third day in a row, although without being able to overcome last week’s highs.
- Advance driven by falling dollar, stable yields and rising markets.
- Key event ahead: Fed decision meeting on Wednesday.
The Prayed is rising on Monday for the third day in a row. In the Asian session, the yellow metal found support in the $1,720 area and recently posted a daily high of $1,736. It is trading around $1730.
Gold gains on Monday are supported by the general weakness of the dollar. DXY trades below 106.50. Treasury bond yields up modestly. Another positive factor is the rise in futures on Wall Street and in European equity markets.
Last week gold bounced off important support just above the 2021 lows near $1675. He managed to cut a streak of five weeks in a row with casualties. This rise is one of the only positive signs since June. The dominant trend remains down, but to see a bigger pullback XAUUSD will need to break $1675. On the upside, the first resistance appears at $1740, followed after a key barrier at $1750, which, in addition to being an important horizontal level, contains the 20-day moving average; if it rises above, the metal could gain momentum.
The economic calendar for the week has one key event ahead of it which is the Federal Reserve meeting on Wednesday. Operators will not only see the decision (which is estimated to be a rise of 75 basis points), but also the signals for the future to analyze how far they can continue to rise, the pace of the rise and how the normalization of the balance will continue. All of this can have a broad impact on bonds and thus gold as well. The Dallas Fed manufacturing survey for July will be released on Monday.
Technical levels
Source: Fx Street
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