- XAU / USD erases daily gains, although it holds the tone in favor of the short term.
- Metal-boosting market optimism was offset Thursday by rising Treasury yields.
- Volume declining in the markets; Several economic reports are coming from the US.
The Gold rose in the Asian session to $ 1808, reaching the highest level since last Friday. It then undertook a pullback, in which it returned the day’s gains and is trading around $ 1804 ahead of the American session and major US data.
Slightly bullish bias
The XAU/USD it advanced supported by optimism in equity markets, and the weakness of the dollar. But he found limits to the rebound in Treasury yields. The 10-year rate is at 1.47% on Friday (+ 1.50%). The volume in the market continues to decline, which may favor exaggerated runs in the next few hours.
On Thursday several reports from the US will be published that may mark the end of the week in a certain way, considering that on the 24th the flow of operations will be further reduced by the holiday in several countries. At 13:30 GMT, the weekly report of unemployment benefit requests, personal income and spending data (including the underlying PCE) and durable goods orders will be published. Later in the day it will be the turn of the University of Michigan Confidence Index and new home sales data.
The XAU / USD maintains a bullish tone, but to ratify it it must exceed $ 1810 in the next few hours, which would leave the way open to test last week’s highs of $ 1,815, a key level. Then the next strong level is around $ 1830. A return below $ 1799 would leave gold weak. Strong support below is at $ 1785.