- Strong volatility in the price of metals on Friday.
- XAU / USD maintains a bearish bias, but volatility predominates.
The Gold had a big reversal and was up almost $ 20 from the day’s lows in just a few minutes. The price fell on previous US data to $ 1,882, the lowest level in three days, to then bounce back up to the $ 1900 area marking a daily high.
The Metals in general are experiencing a volatile day. Silver went from $ 27.40 to over $ 27.70, erasing much of the sharp daily decline. For now, what remains constant is the sharp variability. The XAU / USD is testing the $ 1900 zone but still unable to return above. In case of doing so, an upward extension could occur.
The variations seem to be due to the struggle between yields and the expectation of inflation, in a context of rising stocks and fluctuations in the dollar. While the rise in yields can be negative for gold, at the bottom the most important thing is the real yields. In the last hour the impulse came, also due to a fall in nominal and real yields. The 10-year rate returned below 1.60%.
The movements in the bond market occur despite the fact that it was known, in the US personal income and expenditure report for April, that the underlying price index of personal consumption expenditure rose (annually) to 3.1%, the highest level since 1994.
Technical levels
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