- Fall in Treasury yields propels the yellow metal.
- XAU / USD remains in the consolidation range, which is bottomed at the recent low.
- Recovery again faces resistance in the $ 1800 zone.
The Gold is rising Tuesday, driven by a sharp drop in Treasury yields, which is even dragging the dollar down in the market, in a context of risk aversion. XAU / USD stopped just below $ 1800.
The value of the ounce rose from $ 1783 (low of the Asian session) to $ 1798. It is trading very close to the highs, with the bullish tone still intact, but remaining in the familiar range that has support at the $ 1780 area and resistance at $ 1800. A confirmed departure from the range could anticipate additional runs in the direction of the breakout.
The Treasury bond rally, given the worsening economic outlook due to the new variant of the coronavirus, appears to be holding up gold. The 10-year rate is at 1.42%, the minimum since November 9 and after having been a week ago, at the gates of 1.70%. The 30-year-old went from 2.04% to 1.81%.
For its part, the avocado is not reacting like gold and remains in neutral territory on Tuesday. Although the XAG / USD did not mark new lows, it is still below $ 23.00 and showing no major changes. This reflects that the advance of gold has to do almost exclusively with the yields of the Treasury bonds, which can indicate and make any further advance unsustainable or not free from large setbacks, under current market circumstances.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
