- Gold continues with the rally, accumulating a weekly rise of almost $100.
- The dollar remains under pressure after the inflation data.
- The positive tone in the markets continues and boosts raw materials.
Gold extended the bull run and reached as high as $1,766, the highest level since mid-August. The rise in the yellow metal is fueled by lower yields on Treasury bonds and the dollar.
best week in months
On Thursday it was learned that the United States Consumer Price Index it rose 7.7% in October from a year ago, down from 8.2% in September and less than the 8% expected. The data represented a relief in inflation and generated optimism, in addition to reducing expectations of the continuity of a very aggressive Federal Reserve.
After the report, the decline in dollar, and treasuries soared, all of which are positive for gold. In addition, equity markets reacted positively. The whole context is ideal for gold bulls. The University of Michigan consumer confidence report will be released on Friday.
Short-term technical indicators show XAUUSD overbought but no signs of correction and attempts to confirm above $1760. The next resistance is seen at $1780/82. On the downside now $1,750 looms as relevant support followed by $1,730.
Technical levels
Source: Fx Street
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