- Gold is rising towards $ 1,800 as the sell off around the USD resumes.
- US Treasury yields remain under pressure amid pessimistic expectations from the Fed.
- XAU / USD technical indicators point to further gains.
The oro (XAU / USD) is extending its positive three-day momentum so far on Monday, with the bulls pushing gold prices to new two-month highs near $ 1,790 and rapidly approaching the round level of $ 1,800.
The acceleration of the downward pressure around the US dollar During the European morning it has led to another upward movement in the yellow metal, denominated in dollars. The US Dollar DXY Index has fallen to fresh seven-week lows at 91.17, shedding 0.40% on the day.
The dollar remains weak across the board, thanks to the appetite for market risk, fueled by optimism about higher vaccination rates in Europe, the UK and the US Successful vaccine launches suggest a faster global economic recovery, weighing on the safe haven US dollar.
What’s more, weak US Treasury yieldsFollowing the pessimistic expectations of the Fed, it also contributes to the bearish tone of the dollar.
The precious metal is also based on the news that China has granted permission to its national and international banks to import large amounts of gold into the country. In addition, a favorable technical setup also supports the renewed rally in gold.
Looking ahead, US dollar price action and general market sentiment will lead the way for gold investors, especially in the absence of relevant US economic news on Monday.
Gold technical levels
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