- Gold recovers nearly $ 20 after falling to lows since mid-August.
- Recovery met resistance near $ 1760 and lost steam.
Gold is trading in positive territory on Monday at the $ 1,755 zone, after having fallen in the hours of the Asian session to $ 1,741.65 an ounce, the lowest level since August 11. The rebound came from a drop in Treasury yields and a respite in the strength of the dollar.
Bounce and something else?
The problems of the Chinese real estate giant Evergrande, generated great concern in the equity markets, which added to last week’s rise in the yields of the US Treasury bonds pushed gold to fall as low as $ 1,741. After the precious metal stabilized, a recovery began.
The Upward movement was supported by a strong rise in Treasury bonds, and a limitation on the strength of the dollar. The greenback was in demand in the face of the collapse of several stock markets.
A technical aspect can also be added to the recovery of the XAU / USDas it managed to regain levels above the $ 1745/50 support band. A drop below this zone would put pressure on gold again, exposing the lows.
To the upside, a breakout of $ 1760 will clear the way for the next resistance that can be seen at $ 1767, where is the Friday high and the 20-period mean on the four-hour chart.