XAU / USD recovers after falling to weekly lows

• Gold remains somewhat weak, and is back for the third day in a row, although far from the lows.
• The advance of the dollar put downward pressure on XAU / USD, which rebounded due to stabilization of falls in the stock markets and a decline in the dollar.

Gold fell in the European session to the $ 1824 region, the lowest level since December 4, but quickly rebounded, regaining the $ 1830 zone.

The The fall coincided with the worst moment for European stocks and Wall Street futures, But then equity prices cut losses and favored the rebound in gold.

Concerns for the Brexi no agreement added to the lack of progress for more tax incentives in the US., have played against the mood of the markets. In turn, approvals of the coronavirus vaccine are overshadowed by the increase in cases and the possibility of more restrictions on circulation to curb the wave of cases.

US data will be released on Friday, including wholesale inflation and consumer confidence. No significant impact is expected from these. Attention is expected to remain in what happens with the equity markets.

XAU / USD short term technical outlook

From a technical point of view, in the intraday perspective, the recovery of the value of the ounce above $ 1830 was important, since a consolidation below would point to more weakness ahead. The next resistance can be seen at $ 1835 where the 20 hour moving average is and above it the high of the day at $ 1840 appears. In case of extending the raises, a test at $ 1850 would be expected. A return on the latter would strengthen the short-term prospects for the precious metal.

Technical levels