- Before US data, the dollar loses momentum and favors a rise in gold.
- XAU / USD builds support above $ 1780.
The Gold fell to $ 1,782 on Thursday, just above Wednesday’s low and then rebounded, picking up momentum in the last hour, as the dollar fell.. The price of the ounce is at its highest since the Asian session, trading in the area of ​​$ 1790.
The advance of gold occurs before a fall in the dollar. The DXY is approaching the day’s lows at 92.80, having been near 93.00 hours ago. At 12:30 GMT in the US, the weekly report of jobless claims and a new growth estimate for the second quarter will be published.
The market spotlight is on the upcoming speech by Jerome Powell, the chairman of the Federal Reserve, at the Jackson Hello symposium. The attention has to do with a possible pronouncement on the future of the Fed’s purchasing program.
Before Powell, equity markets are trading in ranges, with no clear direction, but holding on to recent gains. The optimistic tone plays in favor of gold, although at the same time, the rise in the yields of Treasury bonds, it does so against. The 10-year rate is at 1.34%, prior to having reached weekly highs at 1.358%.
$ 1795 zone may be key
The XAU / USD bounce looks good for now. To see a better chance of a firmer advance, the price must exceed and stay above $ 1795, which is a key technical level. If this scenario occurs, a return of $ 1800 would be expected. The next resistance is at $ 1808/10 (weekly high) and very close is $ 1815.
In the opposite direction, negative pressures on gold would increase significantly to drop below $ 1780, paving the way for a bearish extension to the $ 1770 zone.
Technical levels
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