- The US dollar weakens during the American session as market sentiment improves.
- Gold continues to rise despite rising US yields.
- XAU/USD with bullish bias, looking for monthly highs around $1,825.
Gold prices broke above $1,810 and jumped to $1,821, hitting the highest level in a week. XAU/USD remains around $1.1815, seeking a monthly high amid improving market sentiment and despite rising US yields
Stock prices on Wall Street accelerated higher in recent hours after opening in negative territory. The Dow Jones rises 0.50% and the Nasdaq gains 0.42%. US yields move away from highs but continue to rise on the day. The 10-year yield rose to 3.70%, the highest level since November. European yields are also up, boosted by the Bank of Japan surprise.
The Bank of Japan widened the control band of its yield curve, triggering a worldwide bond sell-off. Gold prices were relatively stable and then started to rise on European time. After the start of the American session, XAU/USD rose further.
Gold Short Term Outlook
Gold prices are now looking for a monthly high around $1,825. A break to the upside would expose the next $1,830 resistance zone. The outlook is bullish for gold, however a pullback below $1,810 should keep XAU/USD in the wide range with support at the 20-day SMA at $1,780.
A daily close around current levels would be the strongest since late June. To the downside, a daily close below $1,765 could suggest a near-term top.
XAU/USD Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
