- Fed minutes hurt dollar and boost metals.
- Lower Treasury yields give the yellow metal extra support.
- $1750 area is the new short-term support.
Gold was helped by the Federal Reserve minutes released on Wednesday, which led it to break above $1,750. XAU/USD recently reached as high as $1758the highest level since last Friday.
The price remains in the high zone with a bullish tone intact, although the rallies have run into resistance below $1760. In case of breaking above said level, the next relevant resistance can be located at $1768 and then $1775 will follow.
In the opposite direction, the first support is seen at $1750. Below is $1745, where a confirmation below could turn the tone from very short term to negative, exposing next support at $1735.
The dollar is still weak
The XAU/USD rally began on Wednesday after the release of US economic data and took firmer after the Federal Reserve minutes. The document was “less hawkish” which generated a negative reaction in the dollar and a drop in Treasury yields. The document showed that Fed officials could target a hike of less than 50 basis points at the next meeting on December 13-14.
The dollar index (DXY) it falls 0.17% on Thursday, losing ground for the third day in a row. The volume of operations in the next few hours could tend to decrease considering that it is a holiday in the US for Thanksgiving.
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.
