- Gold maintains short-term bullish tone, held back by $1920
- Dollar weakness, particularly against commodity-linked currencies supports the yellow metal.
The Prayed is rising on Friday and trims weekly losses, in a day where the dollar lost ground for the first time in days. XAU/USD, after meeting resistance at $1920, started to pull back to $1902 after US data and after the opening of Wall Street is approaching $1910.
The rise in gold is behind the weakness of the dollar. The DXY is falling after six consecutive days of gains, and is doing so from the highest since 2002. In turn, the global equity markets have registered the majority of gains, although not on Wall Street, affected by corporate results.
US economic data sent Treasury yields plummeting, coinciding with the intraday correction in gold. The rally then moderated and XAU/USD remained above $1,900. US personal income and spending rose more than expected in March and the core price index for personal consumption spending rose 0.3% in line with expectations.
Barrier in 1915/20$
Gold’s rally stalled at the $1920 zone for the time being. In case of breaking and confirming above, it could continue the rises. The next key level can be seen at $1935 where there is horizontal resistance and where the 20 day SMA is passing.
To the downside, the $1,900 area now appears as the first support, closely followed by $1,895 and $1,890. A return below $1880 would expose the recent bottom around $1870.
Technical levels
Source: Fx Street
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