- Dollar weakness keeps XAU / USD close to recent peak.
- Gold remains bullish despite volatility.
The XAU / USD is rising modestly on Friday, and remains trading in a small range. It’s been hours pushing resistance at the $ 1880 zone. The rises are being supported by a weakness of the dollar in the market and a rise in the bags.
The dollar index is falling and stands at 89.75. For its part, in the bond market, for the moment, calm prevails. The 10-year rate is at 1.62%, closer to the recent low than Wednesday’s high of about 1.70%.
What happens to the dollar in the next few hours could determine the direction of the XAU / USD. In the US, the preliminary PMI report for May and the existing home sales report will be published.
Bullish outlook remains firm
In a broad perspective, gold is on track to finish with gains for the third week in a row and keeps the uptrend intact. The volatility witnessed mostly on Wednesday was unchanged, not even in the short term, as the XAU / USD rebounded rapidly, holding (on a close basis) above the 20 SMA in four hours.
A confirmation below $ 1870 for these hours would point to an extension of the downward correction, the next support being at $ 1860 and then at the $ 1850 area. To the upside above $ 1,880 a test to the recent highs at $ 1,890 would be expected, which is the last defense on the way to $ 1,900.
Technical levels
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