- Gold corrects after failing to hold above $1,900.
- Pullback found support above $1,885 and is approaching $1,900 again.
The gold is falling on Monday after reaching as high as $1,908 in the Asian session, the highest level since early June. After failing to stay above $1,900, the metal fell back to $1,887, paring losses in the last few hours.
XAU/USD is trading at $1896. In the event of a return above $1,900, the bullish tone could intensify again. In the opposite direction, $1885 is becoming an important support that if given way would trigger an extension of the bearish correction.
The weakness of the dollar contributed to favor the rebound of the metal. DXY loses 0.30% and trades around 95.80, within the range of the last few days. Stock markets in Europe are mostly negative. The main focus remains on what can happen on the Ukrainian border.
Equity markets advanced on the news that Putin and Biden had agreed to meet. But as the hours passed, that positive tone gradually eased.
On Monday, activity on Wall Street will be limited because it is a holiday in the US The economic calendar does not show economic reports for Monday and highlights the presentation of Michelle Bowman, Governor of the Federal Reserve.
Technical levels
Source: Fx Street
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