- Gold gains support from lower Treasury yields and dollar weakness.
- Tuesday’s drop hurt the technical picture of XAU/USD.
- Pullback found support above the 20-day moving average.
Gold is rising on Wednesday, after managing to bounce after marking minimums in a week and a half in 1939$. XAU/USD climbed to $1,955, the new daily high, and remains above $1,950 in the run-up to the American session.
Limited bounce, good perspective
Technically, the sharp decline from highs in months and after having approached $2000, it took strength from the gold. On the positive side, the recovery in these hours brought XAU/USD back above the 20-day moving average ($1,945) and also reinforced the support at $1,940. Should it firm below, then further weakness would be expected ahead.
The technical outlook for the day is positive to be above $1950. The next resistance of relevance is at the $1960 zone of influence.
The rebound of Prayed, which is also dragging down silver was made possible in part by the broad correction in the dollar and the Treasury bond market. DXY has the worst day in weeks as yields fall, moving away from the highs in years reached on Tuesday.
Data on the real estate market in the US will be published ahead of time, while various presentations by officials of the Federal Reserve. It also follows the presentation of corporate results for the first quarter and the Russian offensive in Ukraine, which influence the equity markets.
Technical levels
Source: Fx Street
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