- The dollar hits lows against several rivals after US data.
- Lower-than-expected data triggers drop in Treasury bond yields.
- XAU/USD is favored, picture improves.
The Prayed is rising on Tuesday and climbed to $1868 after the US S&P Global PMI report came in below expectations and triggered a drop in the dollar.
The S&P Global PMI activity report showed weaker-than-expected data in May, according to preliminary figures. The integrated index fell to a four-month low from 56 to 53.8, below the 55.5 market consensus. The data weakened the dollar and raised the demand for Treasury bonds.
The 10-year rate on the US bond fell to 2.73%, while the 30-year rate fell to 2.96%, both at daily lows. This gave gold an extra boost. For its part, the DXY is at new lows since late April below 101.80.
The XAU/USD now faces the next resistance at the $1872 zone and then 1892$. The bullish tone remains intact and it would be expected that it can mark new highs if it continues above $1848.
In the $1850 area, the 20 and 100 moving averages are seen on the 4-hour chart. A sustained drop below would change the very short-term outlook from bullish to neutral or bearish. Before this level there is an intermediate support at $1857. Below $1,848, XAU/USD could extend the pullback to $1,830.
|Today last price||1862.45|
|Today Daily Change||8.91|
|Today Daily Change %||0.48|
|Today daily open||1853.54|
|Previous Daily High||1865.47|
|Previous Daily Low||1843.78|
|Previous Weekly High||1849.45|
|Previous Weekly Low||1786.94|
|Previous Monthly High||1998.43|
|Previous Monthly Low||1872.24|
|Daily Fibonacci 38.2%||1857.18|
|Daily Fibonacci 61.8%||1852.07|
|Daily Pivot Point S1||1843.06|
|Daily Pivot Point S2||1832.57|
|Daily Pivot Point S3||1821.37|
|Daily Pivot Point R1||1864.75|
|Daily Pivot Point R2||1875.95|
|Daily Pivot Point R3||1886.44|
Source: Fx Street