- Gold gains momentum despite the strength of the dollar after the start of the American session.
- US data disappoints, focus shifts to speeches by Biden and Powell.
He Gold rallied and climbed to $ 1851, marking a high for the session. In Asian hours the price had fallen to $ 1826, the lowest level in three days. The advance occurred despite the dollar’s highs.
The DXY rose to the 90.50 area, a new daily high, cutting with hours of consolidation. The rise occurred despite the fact that US economic data was below expectations, with a surprise rise in unemployment benefit requests.
Wall Street is trading higher and is among the factors that may have driven gold. The Dow Jones is up 0.445% and the Nasdaq 0.35%. The weak data may favor the introduction of a larger stimulus package and its approval more quickly.
Short-term outlook
From a technical point of view, the gold’s good timing was not enough at the moment to return clearly above $ 1850. It is trading at $ 1846, after hitting the aforementioned level and the 100 hourly moving average. If confirmed above, the metal could extend the advance. The next strong resistance is in the zone of the weekly highs around $ 1862.
In the event of a pullback, now $ 1845 can offer support, below which the $ 1835 level appears, the bottom of the range that held the price in the hours before the recent bullish break.
Technical levels
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