- Weakness in gold persists, although it is still far from $1,800.
- The dollar with mixed results the day after the rise of the Fed.
Gold is falling modestly on Thursday, in another day of central bank interest rate hikes. The precious metal trimmed losses but still looks weak, unable to return above $1,840.
Government bond yields across the world remain on a rising path in most countries, which is one factor that may be holding back gold. In turn, the negative climate in the stock markets does not help the demand for the yellow metal either.
The positive is that the dollar shows some weakness the day after the historic rise in interest rates by the Federal Reserve 75 basis points. Interest rates rose today Swiss National Bank and the Bank of England.
Gold bottomed at $1,814 on Thursday but then bounced back to $1,833. It is trading around $1827, with a modest drop for the day.
Without being able to return above the 20-day average
At the beginning of the week the XAU/USD had a sharp drop, which brought the price below the 20-day moving average. The mentioned average is around $1842, and it became a relevant level. In case of clearly returning above, gold could improve the picture. Above the next resistances are seen at $1860 and $1870.
The short-term bias is still to the downside and another test of the week’s low at $1805 remains within the realm of possibility. Losing that level could lead to an acceleration to the downside towards the May low of $1,786.
Technical levels
Source: Fx Street
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