- Monday’s rally in XAU / USD has been completely erased.
- Despite low Treasury yields and rising stocks, gold remains weak.
The gold fails to rebound definitively. The price climbed to 1819 on Monday, but ended the day at $ 1815 and on Tuesday it extended the decline to 1808, a level located above the minimum of the previous day. In the last hours, the price has been moving between $ 1812 and $ 1809, with an intraday bearish bias.
The price is currently in the $ 1810 zone, which is where the 20-day moving average is passing. Below key support looms at $ 1795. A daily close below the latter would point to further declines.
If it exceeds $ 1820, gold will have a next resistance, in appearance stronger than is the band 1830 $ -1835 $, which held the uploads twice in July. A confirming break of that level would remove the current weakness and leave the price ready to extend the run, possibly towards $ 1,850.
The lack of strength of gold occurs despite some weakness of the dollar in the market and the rise in the equity markets. On Tuesday, the US will release data on factory orders for June. On Wednesday it will be the turn of the ADP employment report, which is the previous one to the official report on Friday, with the non-farm payrolls and the unemployment rate.
Technical levels
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