- The dollar rises again and helps push gold down.
- XAUUSD continues to correct after being rejected from $1,800.
The Prayed is falling for the second day in a row, prolonging the correction from one-month highs and after failing to hold above $1,800. The yellow metal hit daily lows at $1,773, just above Monday’s low.
The $1774 area is turning out to be a major short-term support which, if broken, could lead to further declines, with the next level at the $1766 area and then the August low at $1753. In the opposite direction, $1785 emerges as the first barrier. If gold recovers levels above $1,790, it would alleviate the current downward pressure.
The decline in gold occurs before a general rise in the dollar. The DXY continues with the rebound and advances for the third consecutive session. It is trading breads below 107.00, due to test the highs of this month. Wall Street futures point to a negative open.
The decline in treasury bond yields it may be a factor limiting declines in the yellow metal. The US 10-year rate is at 2.79%, and the 30-year rate at 3.08%.
The economic calendar is light on Tuesday, with data on industrial production and housing starts. The minutes of the last meeting of the Federal Reserve will be released on Wednesday.
Technical levels
Source: Fx Street
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