- Gold is affected by risk aversion that strengthens the dollar, but at the same time favored by lower yields.
- XAU / USD finds support again at the $ 1,850 zone.
The Gold is trading around $ 1,860 practically unchanged from Thursday’s close. It previously had a rapid decline to the $ 1,850 support zone where it bounced up to hit highs for the day at $ 1,864.
The ups and downs in gold in a few minutes were correlated with the fall in equity markets and the rise in bonds. Wall Street futures point to a negative open amid a deterioration in investor mood, which reached a low point after Austria’s announcement to introduce a national lockdown since Monday due to the rise in coronavirus cases.
Ehe climate adverse to risk appetite favored the search for refuge by sending the benchmark rates of Treasury bonds down, which was positive for gold. The 10-year rate is 1.53%, the lowest in nine days.
The precious metal moves between el Drive from lower yields, but limited by the strength of the dollar. The dollar index is up 0.50% and is testing 96.00.
The XAU / USD advance is slowed first by $ 1865 and very close by $ 1870. A confirmation above would point to more rise. In the opposite direction, if losing $ 1,850 (with a confirmation) the scenario would suggest that a more significant downward correction is coming with a possible target of $ 1,840 / $ 35.
Technical levels
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