- Gold regains strength after a nearly $ 30 correction from Friday’s peak.
- XAU / USD looks closely at $ 1800, with support at $ 1788.
Gold is rising on Tuesday and erasing Monday’s losses. The value of the ounce tested the recent lows at $ 1,788 in Asian hours before bouncing higher and climbing to $ 1,798. It remains close to the daily highs, looking closely at $ 1800.
The precious metal is favored by the weakness of the dollar, which is back against most of its rivals and by the recovery in the equity markets. The limit to advances seems to be imposed by the rise in the yields of Treasury bonds. The 10-year rate yields 1.44% and that of 30, 1.88%, both at maximums in days.
The volume in the markets is trending down, facing the Christmas and New Year holidays. The economic calendar on Tuesday is light without impact data from the US The 20-year debt placement stands out. On Wednesday it will be the turn of GDP data for the third quarter and on Thursday several reports including income and personal spending, as well as requests for unemployment benefits.
Regaining strength
The XAU / USD is building a support base around $ 1790. In case of returning and sustaining below, the bearish tone will gain intensity, being the next target at $ 1780.
The very short-term bias looks bullish, and will be reinforced if it returns above $ 1800. Above the key resistances are at $ 1810 and $ 1830/35. This last level is a strong barrier that, if given, would leave the path ready for more climbs.
Technical levels
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