- Gold recovers after having the lowest daily close in a month.
- Outlook remains negative for metal despite rebound.
The Gold is rising at a good pace on Wednesday, rebounding after falling to $ 1728 on Tuesday, the lowest intraday level since August 11. The metal is trading at $ 1745, the high of the day.
The rise of more than $ 15 from the floor of the XAU / USD has alleviated the downward pressures. This advance was trailed by possible profit-taking from short positions and a drop in Treasury bond yields from highs in months. The 10-year benchmark is at 1.50% after reaching 1.56%.
The bond market is expected to remain key for the yellow metal. The schedule of speeches by officials of the Federal Reserve still loaded on Wednesday. These words, added to month-end flows, can generate extra noise.
On Tuesday in the US Senate, Fed Chairman Jerome Powell expressed some concern about rising inflation. Was next to Janet Yellen, the Secretary of the Treasury, who indicated that if the legal debt limit is not raised, the Treasury would run out of money on October 18.
From a technical point of view, gold continues with a dominant bearish bias. The zone of $ 1730 is the first strong support, and below it will continue to $ 1717. To the upside, a confirmation above $ 1752 could point to a consolidation ahead at higher levels. Then $ 1780 will follow as a key zone and a break above it will give support for further advances.
Technical levels
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