- Gold rebounds after macar lows in nine days.
- Improvement on Wall Street boosts gold, but rise in yields limits rebound.
XAU / USD rebounded and rose to $ 1805, cutting daily losses after the start of formal trading on Wall Street. Previously, gold had fallen to $ 1794, the lowest level since July 12.
Despite rising $ 10 from the day’s low, XAU / USD is still in negative territory and faces some downward pressure. On the positive side for the metal is the improvement in the mood of the markets. Wall Street is rising for the second day in a row, picking up much of Monday’s slide. Good tone helps metals.
On the downside, Treasury yields have reversed direction. Demand for the bonds fell in the past two days, driving rates up which is a negative factor for the precious metal. The 10-year rate went from 1.12% to exceed 1.25% on Wednesday.
From a technical point of view, Gold is finding support as it continues to be rejected below $ 1800. If the price affirms below, the weakness would be expected to continue. More losses are likely to break below $ 1790.
If the value of the ounce exceeds $ 1,825, the very short-term bearish outlook would be negated. Before that level, there is significant resistance at $ 1815.