- Gold rises marginally after Friday’s drop.
- No clear direction in the very short term for metals.
- The dollar falls modestly at the start of the week.
Gold rose as high as $1856 in the Asian session, making a daily high and then pulled back to the $1850 area where it is trading.
The dollar presents mixed results on Monday, with the DXY losing 0.15% and is around 102.00. Bond yields are flat and slightly up. The 10-year tranche is at 2.95%, and the 30-year tranche at 3.10%.
Wall Street futures are trading in positive territory, which along with dollar weakness should be positive for gold. At the same time, the rise in yields puts limits on it.
The key US data this week will be retail inflation on Friday. The silent period for Federal Reserve officials begins ahead of next week’s meeting. On Thursday it will be the turn of the European Central Bank.
General view
Gold is trading around $1850, the level where it closed for the last three weeks, supported by the 55 and 100 week moving averages. This graph shows some uncertainty.
On the daily chart the pair has strong support next at $1840, which in addition to being a horizontal level is where the 20 and 200 moving average is passing through. A close below would expose the next support at $1830 and then $1815 will follow. . In the opposite direction, the key resistance is at $1870, and a daily close clearly above it would enable a bullish extension towards $1890.
XAU/USD day chart
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Technical levels
Source: Fx Street
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