- The yellow metal is correcting lower after failing to break above $ 1,865.
- The dollar with mixed results, positive for the week.
The Gold is falling on Friday but is still on track to close the week with significant gains. The value of the ounce failed to hold above $ 1860 and accelerated the fall below $ 1855. It is trading at the lows of the day at $ 1,845, with a bearish tone. Silver is also correcting lower and is trading at $ 24.87, a 1.58% drop.
The losses can be given by a possible profit taking after strong days. In addition, the dollar remains firm in the market, which limits the possible increases in metals. Another factor weighing on gold is the advance of Treasury bond yields. The 10-year rate is 1.58%. Today the bond market will operate normally again after the holiday on Thursday.
Technically the XAU / USD decline has deteriorated the bullish outlook. Although a correction looked within the possible scenarios, it is picking up speed and the fall below $ 1850, if it continues, could mark more declines ahead.
The key support is the $ 1,830 zone. A return below would shift the short-term focus from bullish to neutral. To the upside, XAU / USD needs to break $ 1,860 to enable an extension of the bullish run, which would first target $ 1,880 / $ 85.