- Gold consolidates recent gains, remains capped at $ 1,950.
- DXY under pressure drops below 89.50 to test recent lows.
He oro it rallied from the $ 1,940 zone to $ 1,950. The yellow metal rose to $ 1,951 and, at the time of writing, is slightly below $ 1,950, supported by the general weakness of the dollar.
During the US session, gold rebounded higher, but so far failed to make a clear run above $ 1,950, even as currency pairs such as USD / JPY fell below Monday’s low.
The dollar is under pressure across the board. Better-than-expected economic data did not help the dollar. The ISM Manufacturing index unexpectedly rose in December to the highest level since 2018. On Wednesday, private employment data is due with the ADP report.
A key election is taking place in Georgia. The second round will determine who controls the United States Senate. The results could have an impact on the sentiment of the markets.
Levels to watch
From a technical perspective, the XAU / USD maintains a bullish tone and is testing the $ 1,950 resistance area. A break to the upside would expose the next resistance seen at $ 1,970 / 75. A drop below $ 1,935 would suggest a sharper correction going forward. $ 1,895 / $ 1,900 is now a key support (horizontal level and short-term uptrend line) which, if broken, could change the short bias term to neutral / bearish.
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