- After a jump at the start of the week, gold then pulled back into negative territory.
- Rise in yields and in the dollar it took strength from the yellow metal.
- The dominant trend is bearish, with no clear signals in the very short term.
The Prayed it is trading just below $1650, somewhat calm after a volatile Asian session. At the beginning of the week, XAU/USD rose to $1,670, the highest in a week, but then changed direction.
The continuity of the rally on Friday, after a report that the Fed would evaluate the magnitude of the hikes at the next meeting, had boosted the metal at the beginning of the week. Worse after reaching a peak, the situation changed with the dollar beginning to recover ground. Equity markets then also fell, further weakening gold.
The XAU/USD fell to $1644, before paring losses. If it rises above $1,655, gold could regain strength. The next resistance is at $1658 and then at the peak of $1670. In the opposite direction, if it consolidates below $1645, the negative tone could intensify. Supports are seen at $1640 and then $1620.
In a more general look, the dominant trend in gold is down. The key support at the moment is $1610/15, the bottom this year. In weekly terms, the yellow metal avoided a close below $1,640, which would enable further declines.
XAU/USD weekly chart
-638022067925634340.png)
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
