- Precious metal continues uphill, continuing the end of the year rally.
- Dollar weakness remains main support for XAU / USD.
After a Asian session of volatility and without a clear direction, gold gained momentum in the European one and reached $ 1959, the highest level in nearly two months. In the last hour it undertook a significant retracement to $ 1949. The bullish momentum has narrowed although the dominant trend remains bullish.
The dollar, after a moment of momentary strength after heading to the Democratic victory in the US in the Georgia elections for the US Senate, changed trend reaching new lows in years against several of its rivals. DXY is trading at 89.15, lows since 2018.
The weakness of the dollar has been a key factor for the rally of the XAU / USD, although on Wednesday the rise in the yields of the Treasuries and the tone of caution among investors, limited the advance of the metal. The 10-year rate reached 1% for the first time since March. The economic calendar is loaded on Wednesday, highlighting the Fed’s minutes and the ADP employment report.
From a technical point of view, gold remains bullish. To the upside, a consolidation above $ 1960 would point to a test of the strong resistance zone between $ 1970 and $ 1975, which protects $ 2000. In the opposite direction, strong supports loom at $ 1947 and $ 1927.
Technical levels
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