- Gold trims recent losses, still facing downside pressure.
- Recovery faces resistance at the $1650 zone and then at $1660.
- Yields down and dollar rally moderating helps XAU/USD.
The Prayed is rising on Tuesday and is recovering after falling as low as $1,620 on Monday’s close, the lowest level since April 2020. XAU/USD rallied as high as $1,640 in the European session making a daily high and then pulled back, finding support above $1,630.
The rebound in gold is due to a correction of the dollar in the market and a slight rise in Treasury bonds. The decline in yields from highs in years is favoring the recovery of the yellow metal.
Despite paring some of the recent losses, the trend for gold remains negative. In case of extending the rebound, resistance can be located at $1,650, followed by $1,660. A drop below $1630 in the short term would expose the lows recent and next support at $1610.
The economic calendar for Tuesday shows several speeches by central bank officials, including Lagarde and Powell. Regarding data, the report on durable goods and new home sales for August and the Conference Board consumer confidence index for September, among others, will be published in the US.
Technical levels
Source: Fx Street
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