- The precious metal gains ground but does not reach $ 1,845.
- A setback on Wall Street and a stabilization of the US dollar limits the rise in gold.
He Gold is rising modestly on Tuesday, due to the weakness of the US dollar and US yields. Gold has peaked during the European session at $ 1,845 and $ 1,842 during the American session. Gold prices are moving around $ 1,840 for the second day in a row.
Yellow metal has bottomed out at $ 1,833 and recovered quickly. The downward move has taken place amid a correction in stock prices on Wall Street. The US dollar is falling across the board. Over the past few hours, it has managed to stabilize, but the recovery has failed to gain momentum. The DXY index is hovering below 90.50 and is starting to look to the daily low. The US bond market has opened after the holiday on Monday. The 10-year yield has bottomed out at 1.08% and then rebounded to 1.10%.
Reaction to Yellen’s testimony has been limited. Yellen has spoken about supporting the economy at a time when interest rates are at record lows. His words have offered nothing new to market participants.
From a technical perspective, the short-term bias in gold appears biased to the upside. The XAU / USD faces strong resistance at $ 1,845 which, if broken, could allow an extension towards $ 1,855 / 60. On the other hand, if gold falls and consolidates below $ 1,835, it would target a test of $ 1,830.
Gold technical levels
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