- Volatility in gold skyrockets, after falling more than $ 30 from the peak in no time.
- The dollar regains strength and cuts losses.
Gold is falling significantly on Wednesday after reversing the trend from highs in weeks. After rising to the $ 1960 zone, the metal retraced to $ 1924, cutting Monday and Tuesday gains.
The XAU / USD is trading around $ 1930, at a context of high volatility for the metal, who lost more than $ 30 from the maximum. The bottom trend still looks bullish, but in the very short term, the dollar is in favor.
The greenback undertook a recovery throughout the market, which caused the DXY to rise from a two-year lows to levels above 89.50. The dollar rallied especially strongly against the yen, unaffected by ADP employment data. Previously, it had been supported by the rise in Treasury bond yields.
Regarding the technical landscape, vagueness prevails in the context of volatility. A return above $ 1945 would strengthen gold, while below $ 1925, it would be vulnerable to further losses. In a broader perspective, if $ 1895 gave up, the bullish outlook would be negated, while above $ 1955, the $ 1970/75 barrier would be exposed, which is a key resistance.
Technical levels
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