- Metals rebounded from multi-month lows on Wednesday, ending the negative streak.
- XAU / USD rises towards $ 1,710, the next resistance above $ 1,720.
- Gold and silver are up more than 1% on Wednesday, rebounding after posting heavy losses for two days in a row.
A modest drop in US yields, a correction in the US dollar, month-end flow and some profit-taking favored the rally.
The XAU / USD it rose further above $ 1,700 / oz and peaked at $ 1,709, still below the high touched on Tuesday. The recovery comes after the yellow metal again found support around $ 1,675 during the Asian session.
The rebound so far is considered a correction, as the main trend for gold continues to point to the downside. Price is still strongly correlated with real US yields However, on Wednesday, the rally in the XAU / USD came amid a modest pullback in yields, likely amid downward depletion in the gold and amid a correction in the US dollar.
Analysts at Capital Economics believe that the real Treasury curve will continue to rise. “We expect this to put more pressure on the price of gold, which we doubt will get a compensatory boost from a flight to safety given our view that the US stock market Our forecast for the end of 2021 for the price of gold metal is $ 1,600 / oz. “
Technical levels
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