- Gold advances on a low-volume day due to the US holiday.
- DXY hit a two-decade high.
The Prayed it found support above $1,705 in both the Asian and European sessions and recently rose to $1,715, marking a daily high. The intraday bias is slightly bullish, in a general context of limited price movements in the financial markets.
Following the US jobs report released on Friday, gold extended the recovery from its lowest in months. The rally stopped at $1720, from where it reversed. Volatility remains low on Monday as a result of the US holiday. The Treasury bond market is closed and Wall Street futures are trading mixed.
The dollar started the week marking the highest in decades, measured by the DXY. The advance was modest and cut gains in the last hours, which favored the tepid rise in gold. If it sustains above $1,715, the metal could go looking for $1,720 where the next resistance is, then at $1,733 a downtrend line appears, the break of which would enable further upside.
In the opposite direction, the $1705 area has become the key very short-term support. Below $1698 the bearish tone could increase exposing last week’s low at $1688.
In a more general look, the dominant trend remains bearish for gold. Dramatic support is seen in the area of the 2021 and 2022 lows near $1675.
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.
