XAU / USD bounces from daily lows, still negative just above the $ 1,830 level

• A strong pickup in USD demand triggers some selling in gold on Monday.
• A pullback in stock markets and falling US bond yields help limit deeper losses.

The oro has seen some sales at the start of the European session on Monday and has fallen to three-day lows, although he has quickly recovered somewhat from that point on. At the time of writing, the yellow metal is trading fair above the $ 1,830 level, losing about 0.30% on the day.

The precious metal is moving lower for the second day in a row on Friday and retreats further from two-week highs around the $ 1,848 region Played in reaction to disappointing US NFP data The continuation sale is solely due to a strong rebound in demand for the US dollar, which tends to weigh on gold prices, denominated in dollars.

But nevertheless, a modest pullback in stock markets has helped limit deeper losses for the XAU / USD safe haven. Global risk sentiment has been affected on the first day of a new week by news that The United States was preparing sanctions for at least a dozen Chinese officials for his alleged role in disqualifying elected opposition lawmakers in Hong Kong.

Also, expectations that US lawmakers will agree to a new coronavirus aid package and falling US Treasury yields have provided additional support for the yellow metal. This makes it prudent to wait for some continuation selling before confirming that the recent bounce from multi-month lows has already been exhausted.

There is no major economic data release from the US on Monday, leaving XAU / USD at the mercy of USD price dynamics. Aside from this, the broader market risk sentiment will also play a key role in influencing gold prices and helping investors seize some short-term trading opportunities.

Technical levels of gold