- XAU / USD rises on dollar weakness and drop in Treasury bond yields.
- Ahead: ECB meeting and unemployment benefit data.
- Gold cuts its bearish streak, although it is still below $ 1800.
Gold is rising Thursday after losing ground for three days in a row. The drop in Treasury yields, coupled with the momentum loss of the dollar are supporting the XAU / USD, trading at daily highs at $ 1797.
Recovering shine
The retracement from $ 1,833 extended to $ 1,781 (September 8 low). At this level, the demand for the precious metal appeared. On Thursday after falling back to $ 1,785, it changed direction and started moving forward. The next resistance is at the $ 1800/05 band. Above it will follow $ 1815. In case of continuing to rise, the key level to watch is the $ 1,833 barrier. In the opposite direction, a confirmation below $ 1785 would point to further weakness, with critical support at $ 1770.
The recovery of gold is behind the weakness of the dollar that ended with a streak of three days with rises. Additionally, Treasury yields are also easing, underpinning the XAU / USD.
The decision of the European Central Bank and then it will be the turn of the report of requests for unemployment benefits from the US In addition, for gold, what happens with the Treasury bonds and the greenback will be key.
Technical levels
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