- Gold still in negative territory, but now only -0.55%.
- Metals rebound strongly and cut losses after the start of the American session.
Volatility is dominating the stage in metals trading day. Gold went from a four-week lows at $ 1,844 to bouncing over $ 20 in a few minutes. The price climbed to $ 1868 and is now around $ 1865, still negative for the day, but far from the lows.
The rebound of gold did not have a clear factor behind. The $ 1845 zone is an important support, which contained the lows and then favored a strong rebound. This occurred despite the rise in Treasury yields and the decline in stocks on Wall Street. The 10-year rate fell to 1.48%, at the same time that the precious metal rebounded, in an unusual correction.
Despite the strong rebound, there are still downward pressures in the XAU / USD that raise doubts about the persistence of the recent rise, which eased the bearish moment anyway. The next resistance to the upside is seen at $ 1870 / $ 75, which if broken would point to more raises.
Volatility is expected to remain at extreme levels, considering what has happened recently and that also on Tuesday there will be key data from the US (wholesale inflation and retail sales) and the two-day meeting of the Federal Reserve will begin.
Technical levels
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