- Gold continues to decline after failing to break $ 1,835 at the end of last week.
- XAU / USD decline occurs despite silver stability and dollar weakness.
Gold is losing 0.30% on Monday and It hit a low since Thursday at $ 1806. Then it bounced moderately without being able to exceed $ 1,810. Hours ago, the price had reached $ 1817.
Yellow metal It is starting the week extending the fall of Friday, when after failing to sustain above $ 1,830, it experienced a strong correction, yielding more than $ 20. The negative tone remains. For now, the decline found support above the $ 1800 zone.
The negative tone of gold is given despite the fact that the equity markets in Europe are rising and that the futures of Wall Street are in positive. In other words, the risk appetite context is not helping the metal. In turn, Treasury yields remain near recent lows and the dollar is losing ground, with the dollar index (DXY) back below 92.00.
With regard to data, the PMI (final) and the manufacturing ISM and the construction spending report will come out of the US. These figures, especially the ISM, may have some impact on the market. The key piece of information for the week is Friday’s employment report.
Strong support in 1800/05
Should the XAU / USD decline extend, there is strong support around $ 1805, which could extend to the $ 1800 zone. In other words, if the $ 1800/05 band is lost, the negative tone could intensify. To the upside, a rally above $ 1,820 would ease downward pressure, while to enable a bullish extension a break of $ 1,835 should be seen.
Technical levels
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