- Gold recovers from Monday’s slide with a rebound from $1,740.
- Raises continue to face resistance at $1760.
- The fall in the dollar and in the yields of Treasury bonds support the advance of the yellow metal.
The Prayed is having the best day in over a week on Tuesday and recovers from the previous slide. XAU/USD bottomed out at the start of the Asian session at $1,739, and then began to rise steadily, reaching as high as $1,759 in European hours.
The intraday bias remains bullish for gold which is trading between $1750 and $1760. In case of consolidating above $1760, the yellow metal would be positioned for a bullish extension.
To low supports are seen at $1745 and then $1740. Below then appears $1,730 (the 20-day average also passes through there), which if broken would generate a deterioration in the technical outlook for the XAU/USD.
The gains on Tuesday are being supported by a drop in the sovereign bond yields. The 10-year tranche of the US bond is at 3.65%, while the 2-year tranche touched 4.41%, the lowest level since November 17.
In turn, the dollar is showing weakness, particularly against currencies linked to commodities and those of emerging markets, which may be reflecting some optimism regarding the economy and inflation.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
