- The dollar is rising and the DXY is nearing Thursday’s highs.
- XAU / USD shows signs of weakness below $ 1850.
Gold failed to break above Thursday’s highs in the $ 1856 zone and reversed the trend of the day. It is trading at $ 1845, at the lows of the day, with a bearish bias in the face of a general rise in the dollar and a fall in the stock markets.
The drop in Treasury yields appears to be limiting the decline of the precious metal. The 10-year rate is 1.10%. Powell’s announcements Thursday of an unchanged continuity in President-elect Biden’s purchasing program and economic stimulus were followed by an appreciation of the dollar. Gold threatened with a rise but it was limited.
After failing to hold above $ 1,850, gold is now heading lower. Below $ 1844, the next support looms at $ 1835 and then $ 1827. A return above $ 1850 would ease downward pressures, and only a consolidation above $ 1860 would suggest more raises ahead.
In the next few hours the focus will continue on the bond market, on Wall Street and in US economic data., which include retail sales, industrial production, and consumer confidence.
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