The rise in inflation in the United States moves gold away from weekly lows.
XAU / USD can’t reach $ 1,750, trim gains.
Gold prices are in a volatile session after bouncing from a one-week low to a two-day high in a few hours. In European time, the XAU / USD bottomed at $ 1,723 / oz, the lowest since April 4, and recently hit 1,749. At time of writing, the metal is hovering around $ 1,740, up $ 10 a day.
The strong rally started after US inflation data The higher than expected reading weakened the US dollar and pushed US yields lower. The decade stands at 1.65%, far from the maximum of 1.70%. On Wall Street, stocks are mixed.
Gold and the $ 1,750 / 55 area
Gold’s bullish movement slowed as it approached the $ 1,750 / 55 area which is a critical technical level. A clearly above consolidation would clear the way to higher gains in the metal. Despite the recent pullback, the short-term outlook improved after the rally of more than $ 20 from lows.
A drop below $ 1,735 could suggest further weakness in the future, while below $ 1,730, a test of the daily low seems likely.
Technical levels
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