- XAU / EUR extends its rally for the third day in a row, up 0.27% during the New York session.
- XAU / EUR rose nearly 4% from last week’s lowest low as central banks delayed rate hikes.
- XAU / EUR: A breakout above € 1,592 would open the door to new yearly highs.
XAU / EUR is advancing for the third day in a row, extending its rally from Thursday of last week, up 0.27%, trading above 1,574.63 euros during the New York session at the time of writing. Market sentiment has been optimistic throughout the day, as reflected by the main US stock indices, which rose between 0.08% and 0.29%.
In the past week, some central banks held their November monetary policy meetings. In the case of the Reserve Bank of Australia (RBA), the central bank decided to keep its interest rates unchanged at 0.10%. In addition, it delayed expectations for higher rates, but moved its target to 2023, instead of 2024.
In the United States, the Federal Reserve will begin the process of reducing its bond purchase in mid-November. In addition, it kept its interest rates unchanged and reiterated that the reduction of the bonds would not mean that the rates would have to rise.
The Bank of England (BoE) disappointed investors in the UK as the market expected a rate hike.
That said, investors flew into safe-haven assets, in turn driving XAU / EUR prices higher, from € 1,518 to € 1,577.
XAU / EUR: Technical perspectives
On the daily chart, the XAU / EUR is trading well above the daily moving averages (DMA), which means that the yellow metal has an upward bias. Besides, the next solid resistance area would be the 2021 high at € 1,592. A break in the latter zone would open the door to new yearly highs, with 1600 as the next major barrier.
On the other hand, failure in the $ 1,592 region would expose the June 6 high at € 1,567, followed by the October 28 high at € 1,535.
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