- XAU / USD continues to rebound from monthly lows, approaching $ 1,900.
- The improvement in risk sentiment weakens the USD, DXY remains above 94.00.
Yellow metal it is rising modestly on Monday as it continues to rebound from the one-month low of $ 1,859 / oz Thursday. Recently, the ounce rose to $ 1,895, the strongest level since Wednesday. It remains near the top, with the bias pointing to the upside.
Gold is rising supported by an improvement in risk sentiment and amid a mixed US dollar. On Wall Street, the Dow Jones was up 1.63% and the Nasdaq was up 0.35%. The main indices are recovering after suffering the worst week since March.
The US economic reports beat expectations and had no impact on the markets. The ISM manufacturing index jumped to the highest level in more than two years. The dollar was not affected. The DXY is marginally higher as the US dollar gains against European currencies and the yen, but is correcting lower against commodity-linked currencies.
From a technical perspective, the XAU / USD is moving with a bullish bias supported by an uptrend from Thursday’s low that is currently around $ 1,880. A break to the downside should weaken the outlook, exposing the next support at $ 1,870 that protects the October low at $ 1,859. On the upside, immediate resistance is at $ 1,900 (round number and 20-day moving average) followed by $ 1,914.
Credits: Forex Street
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