XAU/USD Hits Eight-Month Highs Near $1,900

• Gold rises more than $20 on Thursday and $70 in a week.
• The sight of the metal goes to $1900, support at $1870/75.
• Ahead: US data including jobless benefits, housing benefits and the Philly Fed.

The gold is being one of the stars of the day and rises almost 1% on Thursday. The value of the ounce reached $1,893, a level last visited in June 2021. From the peak, it then moderated the run and is trading at $1,885.

The Gold’s advance accelerated after breaking firmly above $1870/$75, the November high zone. This level is now the first relevant support. On the upside, eyes are on $1,900, due to its importance as a round number, followed by $1,910 and $1,916, the June 2021 high.

There is no key factor behind the current rally in the yellow metal. The resilience he showed in the weeks when the Federal Reserve was signaling a shift towards an adjustment policy, it was a sign of strength. The minutes released on Wednesday from the last FOMC meeting did not bring any surprises on the “hawkish” side and gave way to the pound for gold.

Treasury yields eased at the start on Thursday, with the 10-year rate reaching 1.95%, the lowest in two days, but already above 2% again and still near the highest in months. The rise in yields has not slowed down XAU/USD and appears to have only capped the upside. The weakness of the dollar is a factor that contributes to the rises in the metal.

Gold’s bullish tone remains firm, with no signs of corrections so far. Important US data will be released on Thursday including jobless claims, housing starts, building permits and the Philly Fed.

Technical levels