- Gold climbs to weekly highs above $1,760.
- The dollar loses ground on all fronts despite risk aversion.
- Wall Street futures point to opening with losses around 0.70%.
Gold rose nearly $20 from the Asian session low and recently hit a one-week high of $1,763, buoyed by a weak dollar and despite a rebound in sovereign bond yields.
At the start of the week, XAU/USD fell to test Friday’s low at $1745, but managed to hold above. After hours of trading steadily, it jumped in the European session on general dollar weakness.
The yellow metal is trading at $1760, in positive territory and for the moment holding on to last week’s high. The very short-term tone is bullish for the metal. Below $1755 it could ease while just below $1750 it could change. Key support remains at $1745. If the rally continues, XAU/USD will face resistance at $1765 and then $1775.
Dollar down, metals up
The weakness of dollarpossibly in anticipation of a Federal Reserve less aggressive, remains important support for gold. It is also true for silver which bounced up more than 50 cents from $21.00 to $21.60.
The markets are cautiously watching the demonstrations in China against the restrictions by the COVID-19, which are contributing to a decline in the equity markets.
technical levels
Source: Fx Street
I am a writer for World Stock Market. I have been working in finance for over 7-8 years, and I have experience with a variety of financial instruments. My work has taken me to Japan, China, Europe, and the United States. I speak Japanese and Chinese fluently.
