- Gold holds firm at the start of the week and continues to rally.
- XAU/USD accumulates a rise of more than $50 in a week.
- Progress occurs despite the strength of the dollar and rise in yields.
After a pause, the Prayed resumed the upward trend and climbed to $1993.85, reaching the highest level since March 11. It then started a pullback and in the pre-American session it trades just below $1990.
The advance of the yellow metal occurs despite the fact that the dollar is firm in the market on Monday and the rise in Treasury bond yields. The 10-year rate reached 2.88%, a new high for the current cycle, and the 30-year tranche did the same, reaching 2.96%. The dollar index is up 0.15% and trading at 100.65, having tested the 2022 peak around 100.75.
Strong movements in gold led it to rise 1% at one point, before paring gains. This in a context of low volume since it is a holiday in most European countries.
The economic calendar is light at the beginning of the week. The publication of the NAHB housing sector index and the presentation of James Bullard, the president of the Federal Reserve Bank of St. Louis, stand out.
Closer to $2000
To break the highs, the next key level in XAU/USD is the $2000 zone of influence. If it breaks and firmes above, the metal will signal a bullish extension.
If it cannot hold above $1990, a correction could take place. The first target of such a move is seen at $1980 support, followed by $1970. The 20-day moving average at $1974 can also be included among the relevant levels.
Technical levels
Source: Fx Street
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