- Gold tries to advance supported by a weak dollar and a better mood in the markets.
- DXY falls for the third day, after accelerating the decline.
- Treasury bond yields up modestly.
Gold is rising on Tuesday, trying to make up ground, after Monday’s failed rebound. XAU/USD is trading at daily highs at $1,717, after gaining support above $1,705.
The Gold price movements are showing some calm and less volatility than days ago. XAU/USD continues to hold above $1,700, which is a key level that, if broken firmly, would enable a test of the 2021 low at $1,675. On the upside, a resistance zone appears around $1,722; above it will follow $1745.
From a fundamental point of view, gold finds support in the weak dollar and the best mood in the equity markets. The greenback is falling for the third day in a row after accelerating the decline. DXY trades at almost two-week low below 106.50.
Treasury bond yields remain stable, with a slight rise, which if accentuated could lead to problems for the yellow metal. The yield at 10 years is at 2.98% and at 30 years at 3.15%.
The economic calendar shows as relevant data for the US on Tuesday the report on housing starts and construction permits. The strong event of the week will be on Thursday with the decision of the European Central Bank.
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.
