- The XAU / USD failed to assert itself in positive territory and is still vulnerable.
- Rise in Treasury yields and advance of the dollar, pressure on XAU / USD.
- In Focus Monday: Bonds, US Data, and Speeches by Fed Officials.
The price of an ounce of gold could not be sustained and reversed the intraday trend, falling to $ 1744. In Asian hours, the XAU / USD had climbed to $ 1760, the highest level since Thursday. The weakness remains present on metals.
The combination of a new bullish leg in Treasury yields and a moderate rise in the dollar in the market, favored the change in the direction of gold.
Last week gold had the lowest weekly close since April, although it managed to find support at $ 1735. Should it assert below $ 1745, another test to this year’s low at $ 1676 will still be within the scope.
To the upside, the downward pressure will be relieved with a return above $ 1780. Above it will follow the resistances of $ 1795 and then $ 1815. The key level is $ 1833, as the break of that level would negate the bearish bias and point to more rises.
Ahead: Yields, Fed and Data
For the rest of the day, the bond market will continue to be on investors’ radar. Something important to the performance may be the statements of various officials of the Federal Reserve Monday, highlighting the first public words of Leal Brainard (Fed Governor) and John Williams (New York Fed) following last week’s FOMC meeting.
Regarding data, it will be published in the US at 12:30 GMT on durable goods orders report August which is expected to show an improvement of 0.6% and then at 14:30 GMT on Dallas Fed Manufacturing Index of September.
Technical levels
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