- Gold erased daily losses and rose to $ 1,733.
- Rebound comes after falling to $ 1706, the lowest level since June last year.
Gold managed to recover from nine-month lows and erased the day’s losses, climbing to $ 1,733. It had previously dropped to $ 1706. In the very short term, downward pressures have partly eased with the recent rebound, but the underlying trend is still showing the metal vulnerable.
The rebound was accompanied and supported by a correction of the dollar in the market. The greenback gave up the gains it had against most currencies. In addition, equity markets also cut losses. One factor that may have limited the rebound is the rise in Treasury yields. The 10-year rate climbed to 1.44% from 1.41%.
From a technical perspective, oversold conditions on the short-term charts were a factor that appears to have helped the XAU / USD find some support near the $ 1707 region. That said, the bias remains bearish, showing the metal still vulnerable.
To the upside, resistances are seen at $ 1740 and then $ 1760. A return below $ 1715 would add pressure to the low for the day and target $ 1700.
XAU / USD 4 hour chart
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