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XAU / USD retraces from month highs, finds support above $ 1770

  • Strong intraday pullback in metals, erasing much of the day’s gains.
  • Gold does not hold above $ 1780, it tries to recover the rises after falling to the $ 1770 zone.

In a day of range traversal on major currency crossings, metals are offering high volatility traversal. Gold had reached highs since late February at $ 1783 just two hours ago, it quickly fell to $ 1,771. It is trading around $ 1775, trying to get back on the bullish path.

Something similar happened in silver, since after reaching the $ 26.30 area, it fell back reaching levels below $ 26.00. Faced with these movements, the dollar index (DXY) remained around 91.50.

The correlate of the movements in metals is in the bond market. The decline in metals coincided with a recovery in Treasury bonds. The 10-year rate reached 1.59%, after having stood at 1.53% on Thursday. In the last hour, it fell back to 1.57%. If there is a prolongation in the rise of Treasury bond yields, the rise in the price of metals will be complicated.

Another factor supporting gold continues to be the rise in the stock markets. On Wall Street, the Dow Jones is at record highs, rising 0.45% so far this day. There was a lower-than-expected rise in consumer confidence data for April and previously a significant rise in housing starts.

Technical levels

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