- The positive outlook for gold is maintained, which advances despite a rise in the dollar.
- Confirmation about $ 1870, leaves doors towards $ 1890.
- Ahead on Tuesday: US data for retail sales and industrial production.
The gold continues to advance and is operating above the $ 1870 area, at maximums in five months. The price of the yellow metal reached $ 1,874, and remains close to the new peak. After Monday’s slight drop, gold resumed its gains on Tuesday, even despite the strength of the dollar.
The yellow metal is still strong and after several tests it is finally trading above $ 1870. If it asserts above, the next strong resistance can be located around $ 1890. In the opposite direction, the first relevant support appears at $ 1855, followed by $ 1840.
The bullish tone remains firm, even despite signs of overbought. The dollar is trading at 16-month highs, but this is not being a problem for gold. Treasury yields decline modestly and the 10-year rate remains close to 1.60%.
It will be key to see if the XAU / USD manages to sustain above $ 1,870. The price could be affected by data to be released from the US on Tuesday including October’s retail sales report and industrial production. In addition, several Federal Reserve officials will give speeches (Bostic, George, Kashkari, Barkin and Daly).
Technical levels
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