- Gold rises for the fifth day in a row, but slows the pace.
- Bias remains bullish, although there are signs of a possible pause.
- Above $1,775, next resistance at $1,790, which is the last defense for a comeback above $1,800.
The Prayed It climbed within hours of the Asian session to $1,780, reaching the highest level since July 5. It then fell back to $1768, from where it bounced. It is trading around $1775, with the bullish bias intact.
The yellow metal continues to be supported by the decline in the yields of Treasury bond that remain in the low zone in months. The 10-year bond yields 2.55%, a level not seen since early April.
On Tuesday, the demand for the bonds comes from a cautious climate in the markets after several days with increases. The focus on Tuesday is on what may happen with Nancy Pelosi’s visit to Taiwan that may increase tensions between China and the United States. Regarding data, there will be no impact from the US on Tuesday, on Wednesday it will be the turn of the ADP and on Friday the official employment report.
Technically the short-term trend remains bullish on XAU/USD and it will remain firm if it continues above $1755. To the upside, the next strong resistance is seen at $179, followed by $1805.
Technical levels
Source: Fx Street
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