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XAU / USD retraces from four-week highs

  • Gold loses strength after failing to hold above $ 1,830.
  • Rise of the dollar and rebound in yields, more falls in bags limits advance.

The Gold is trading a small daily loss around $ 1,824 on Thursday, ahead of the release of US P economic data.On the contrary, the value of the ounce climbed to $ 1834, the highest level since June 17.

The setback occurs after gold could not hold above $ 1,830 and in a different context than the one that reached the advance of the previous sessions. Wall Street futures are in negative territory, with the Dow Jones aiming to open at a three-day low. Treasury yields are rebounding from lows in months. Finally, the dollar is recovering some of the ground lost on Wednesday.

The comments from Jerome Powell, They had triggered a strong decline in the dollar in the market by pointing to the continuity of the purchasing program as it is today. Then data from China showed a slowdown in growth, as expected, offering the last push against the dollar and in favor of the metal.

After reaching the peak of $ 1834 the XAU / USD began a retracement, for now moderate and corrective in nature. Around $ 1815/1820 there is a relevant support band that, if relented, would take the momentum out of the precious metal.

In the next few hours the focus will continue on the bond market, Wall Street and in the US data The weekly report of unemployment benefit requests, the Empire manufacturing index, the Philly Fed and the industrial production report will be released. . In addition, Powell will return to Congress, although he has already said almost everything he had to say.

Technical levels

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