- After Tuesday’s setback, gold rose again, although without breaking Monday’s highs.
- XAU / USD remains firm with support at the 200-day average.
The Gold picked up pace in the Asian session and climbed to $ 1819 in a context of a general decline in the dollar in the market. Then the price of an ounce fell to find support above $ 1,810. It is trading at $ 1816, with the moment pointing higher, and looking sideways at the day’s high of $ 1820.
The precious metal maintains a positive short-term bias, reaffirmed with the strong rise on Friday, after the testimony of Jerome Powell, the chairman of the Federal Reserve.
So that the bullish tone gains moment, gold must first overcome and affirm over $ 1820, which will pave the way for a test of the key resistance at $ 1832/35, where the July and August highs are. If it exceeds that level, the outlook for the yellow metal will be one of more gains. In the opposite direction, a fall below $ 1805 would take momentum from the metal, and a confirmation below $ 1795 would intensify the bearish tone.
Gold may continue to see its movements affected by the general performance of the dollar and by what happens in the bond market. Data to be released today from the US includes home price indices, Chicago PMI and consumer confidence index. They are not expected to have a great deal of influence. On Wednesday it will be the turn of the employment ADP, which could already be more shocking and which will serve as a preliminary to the official report on Friday, with the non-agricultural payrolls.
Technical levels
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
