- Yellow metal maintains bullish momentum, behind the weak dollar.
- US wholesale inflation data may further stimulate DXY decline.
- XAUUSD faces next resistance at the $1800/05 area.
Gold continues to advance strongly, recently climbing as high as $1,784, the highest level in three months. Although he later returned a portion of the winnings and returned to $1,775. The bullish tone remains firm and counts behind the weakness of the dollar and the drop in Treasury bond yields.
Last week’s US retail inflation data gave XAUUSD more momentum. At 13:30 GMT the wholesale inflation will come out That could have a big impact on the market. Lower-than-expected data will increase the expectation that the Federal Reserve will ease the rate of interest rate hikes and therefore may put more downward pressure on the dollar.
The rise on Tuesday in gold occurs before a drop in the dollar. The DXY loses 0.90% and is at its lowest since mid-August. The Treasury yield is at 3.80%, the lowest level since October 6.
In case of extending the rise, the next resistance is seen at $1,780 and above the next barrier is at $1,800/05. Going the other way, immediate support is at $1,759, followed by $1,730.
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.
