- Negative trend remains firm in metals.
- XAU/USD with support at $1720 and then the 2021 low will appear.
- Lower Treasury yields limit gold’s pullback.
Gold is trading in the low zone since September on Tuesday. in asian hours XAU/USD fell to $1723, and then bounced. The rallies could not break above the $1740 zone and it is back below $1730. The dollar remains firm in a context of risk aversion.
The dominant trend in gold is still down. The setback in treasury bond yields it is a factor that is limiting the declines of the metal. At the same time, the strength of the dollar and the weakness in the financial markets remain a key factor.
Monday the XAU/USD had the lowest daily close since September. The next support is seen at $1720. Below that the focus will shift to $1,700 and then the 2021 low at $1,675. On the upside, the first resistance is at $1,740 and above it follows the $1,750 area. Just after breaking $1,810, the short-term bearish picture would change.
The silver he is having an even worse time on Tuesday, although he cut losses in the last hour. XAG/USD is back above $19.00, having dropped as low as $18.73, the lowest level since July 2020.
Technical levels
Source: Fx Street
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