- Gold hits eight-month highs on Monday as the dollar remains weak.
- Stocks and commodities rise on Monday, further supporting the yellow metal.
- No impact data on Monday, the most relevant of the week US CPI on Thursday.
Gold rallied as high as $1,880.90 on Monday, hitting its highest since early May. After this, XAU/USD lost steam and fell back to $1,871, paring some of the day’s gains. The uptrend remains firm.
Weak dollar and risk appetite
After slumping on Friday following US economic data that included the official jobs report, the dollar still weakened. The treasury bond yields they had a sharp fall and today they look more stable, which helps to give the greenback some support. The DXY is at 103.70, looking closely at the December lows.
Signs of slowing inflation along with economic data pointing to a slowdown are fueling speculation that the Federal Reserve may be close to ending the interest rate hike cycle. This works against the dollar, and in favor of bonds and stocks. Contributing to the good mood, today China reopened its borders after three years. At the same time, the wave of infections in the Asian giant is already a matter of global concern.
Technically gold remains bullish, now with the key support in the area of ​​1,860/$65. A dip below could ease upside pressures. Then the next critical support is in the $1,830/$35 area. To the upside, the next relevant barrier before $1,900 is at $1,890.
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.
