XAU / USD does not hold the bounce and tests $ 1800
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- Gold reaffirms bearish bias after failing to sustain recent rise.
- Advance in Treasury yields puts downward pressure on the metal.
The oro it is down 0.50% on Wednesday and just hit a low for the day at $ 1800. The price is pressing this level that if it yields it would expose the low of the week of $ 1794.
The negative tone regarding the metal was reaffirmed on Tuesday, after the rise to $ 1825 was quickly reversed. The XAU / USD closed below $ 1,810. At the start of the European session on Wednesday, the precious metal reached as high as $ 1,813 before falling to $ 1,800.
If bIn the best climate in the markets should support gold, the sharp rebound in Treasury yields pushes it lower. The 10-year rate on Tuesday had fallen to 1.12% and is now at 1.24%. A big bounce in returns, which also supports the dollar in the market.
The greenback is operating without major changes compared to Tuesday’s close, without being greatly affected by the rise in the equity markets. With no data ahead on Wednesday’s economic calendar, the focus shifts to the European Central Bank meeting on Thursday. That same day the report of requests for unemployment benefits will be published in the US.
