- Gold rebounds sharply as government bond yields fall.
- XAU/USD rises $30 from monthly lows and hits five-day highs.
Gold price rises sharply on Tuesday, supported by lower government bond yields. He XAU/USD it reached a new daily high of $1,962 before pulling back towards $1,950.
Previously, the XAU/USD pair had hit a two-month low of $1,931 at the start of the European session, before rising more than $30 in a rally that began after the release of inflation figures from Spain.
According to preliminary data, Spain’s consumer price index (CPI) fell 0.1% in May, against expectations for a 0.1% increase, and the annual rate fell from 4.1% to 3.2%. These figures could anticipate a further decline in inflation in the euro zone, which will be published on Thursday. Germany will report preliminary CPI data for April on Wednesday.
Meanwhile, US economic data will also feature prominently, with a focus on employment numbers. ADP will report on Thursday and Nonfarm Payrolls will be released on Friday.
Bond yields are falling across Europe and the US, with the 10-year German Bund yield at 2.37%, the lowest since May 18, and the 10-year Treasury yield at 3.73%. , 1% less in the day.
technical levels
Despite the recent bounce in XAU/USD, the overall trend remains bearish. If the price manages to consolidate above $1,955, it could provide some support for the bulls and potentially lead to a more sustainable rally. The next resistance levels are at $1,965 and $1,970.
On the other hand, if the pair falls below $1,945, the next support level would be at $1,935, and then it could test the recent low near $1,930.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
