XAU / USD finds some support ahead of weekly lows, for now at least

• Gold witnessed some subsequent selling for the second straight session on Friday.
• A strong rally in US bond yields sustained the USD and weighed on the metal.
• The risk tone supported the XAU / SUD safe haven and helped limit losses.

The oro It lost some additional ground during the early North American session and fell to the lower end of its weekly trading range, around the $ 1,810 region.

The precious metal saw strong selling for the second straight session on Friday and was affected by a combination of factors. Despite doubts about the pace of the US economic recovery, the US dollar was back in demand and put some follow-up pressure on the dollar-denominated commodity.

The USD received an additional boost thanks to a strong rally in US Treasury yields The US bond market has reacted strongly and priced the prospects for approval of the package $ 1.9 trillion stimulus package from US President Joe Biden. This was seen as another factor that drives the fluxes away from the non-yielding yellow metal.

That said, a softer risk tone extended some support to the XAU / USD safe haven and helped limit any further losses, at least for the time being. The commodity has managed to rebound modestly from daily lows and was last seen trading in the $ 1,817-18 region, although the short-term bias remains skewed in favor of bearish traders.

Market participants are now looking forward to the US economic agenda, highlighting the only release from the Michigan Consumer Sentiment Index for February. This, together with US bond yields, will influence USD price dynamics and provide some momentum. Traders could follow the signs of the broader market risk sentiment.

Technical levels