- Metals rose sharply after Powell’s speech amid a falling US dollar and appetite for risk.
- XAU / USD is testing the weekly high near 1.810 / oz.
Gold prices they rose more than $ 20 from the daily low, returning to the weekly high at $ 1,809. The positive tone remains intact despite the strong rally that took place in the last hour.
The trigger for the rally was Fed Chairman Powell’s speech that sent the dollar lower. He mentioned that the Fed could begin to reduce its purchasing program this year, without offering a specific timeline. You see the rise in inflation fade over time.
The DXY fell to 92.66, the lowest in more than a week. Stock prices reacted higher. The Dow Jones is up 0.69% and the Nasdaq up 1.0%. US yields fell, with the 10-year yield falling to 1.31%.
XAU / USD is testing the weekly top $ 1,809, and a break to the upside would put prices at the strongest level in three weeks. The next resistance could be seen at around $ 1,816, and then comes the July high of $ 1,834. The area around $ 1,800 and $ 1,795 is again the support to watch out for in the short term.
Technical levels
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