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XAU / USD again fails to claim above $ 1800

  • Gold retreats after trading above $ 1800 and erases daily gains.
  • Advance Treasury yields do not let XAU / USD benefit from weak dollar.

Gold weakened after rising to $ 1803 an ounce, the highest level in three days. The price fell and returned to the area of ​​$ 1,795, where it is trading practically unchanged from Thursday’s close.

The advance had been driven by a general decline in the dollar in the market. Then the dollar stabilized and a rise in Treasury yields caused the setback.

In this way, it has been three days in a row that the XAU / USD cannot return and stay above $ 1800, which shows a persistent weakness. The latter would become more apparent with a drop below $ 1780, which would point to a test of the next support at $ 1770.

In the area near $ 1800 is also the 20-day moving average. Therefore, if it is affirmed above, a more important recovery could be expected with an initial target of $ 1,815. It will then follow $ 1825 before the important $ 1833 level.

On Friday in the US the wholesale inflation report will be published. The Producer Price Index is expected to show a 0.6% rise in August. The market at this time is more sensitive than at other times to inflation data, so it could have an impact on prices.

Technical levels

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