- Gold extended the pullback from two-week highs.
- Bullish tone would be reinforced above $1855.
- Neutral metals in the week, recovery in doubt.
The Prayed is trading around $1845 ahead of US data, in negative territory despite some dollar weakness and stable Treasury yields.
The XAU/USD, which two days ago had reached $1,869, the highest level since May 9, hit a six-day low recently at $1,840. From the bottom he quickly bounced back, firming up above the $1840 area, which is turning into very short-term major support. Below is the four-hour average of 55 at $1,835.
The four-hour chart shows mixed signals for XAU/USD, without the bullish strength of previous sessions. The price is below the 20 moving average, which at $1855, coincides with a horizontal resistance. A rise above could return the initiative to the “bulls” of gold. The next barrier is in the $1870 area and a close above it would enable more rallying in the short term.
The Negative tone of gold on Thursday occurs despite the decline in the dollar, with DXY approaching weekly low and flat, away from recent peaks in Treasury yields, factors that should favor the yellow metal.
The tone of Wednesday’s Fed minutes may help keep gold capped. In minutes, US economic data will be known that can generate noise. At 12:30 GMT there will be a new estimate of GDP growth for the first quarter and the weekly report on jobless claims.
Technical levels
Source: Fx Street
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