- Gold rises more than $ 20 on Friday, in a day of high volatility in the financial markets.
- Treasury rally propels XAU / USD back above $ 1800 and beyond.
Fears about the impact of a new variant of COVID generated a sharp decline in equity markets and a rise in government bonds. In this context, gold was favored and rose from $ 1787 to $ 1810, where it is operating.
The precious metal rises more than $ 20 and is trading at highs since Tuesday. It is cutting weekly losses and moving away from the key support zone of $ 1780.
The key price boost is given by the sharp drop in Treasury yields. The benchmark rate for the 10-year US bond, which just two days ago flirted with 1.70%, is at 1.52%; that of 30 years, went from levels above 2.0% to 1.86%. These movements explain the advance of gold and at the same time the weakness of the dollar against the EUR, JPY, CHF and GBP.
Wall Street futures point to an open with declines on average of 1.60%. In Europe, the IBEX 35 loses more than 4% and the DAX 2.95%. Gold is favored not because it is a safe haven, but because of the strong rise in US bonds.
Technical levels
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