- Dollar weakness drives gold’s recovery.
- Key area to break to the upside is seen at $1750.
- Break below $1730 would intensify the bearish bias.
Gold is taking advantage of a fall in the dollar after three consecutive days with rises and is recovering from lows in a week and a half. XAU/USD rose to 1$748, marking an intraday high. From Monday’s low, the yellow metal rallied more than $15.
On Monday, the price fell to $1,732, in a context of a general rise in the dollar, reaching its lowest level since November 10. Then a recovery began, which is still ongoing. A fall in the dollar (the DXY falls after three straight days of gains) and a slight pullback in Treasury yields are supporting gold. Silver is rising at a more significant pace and is up 1.40% on Tuesday.
No impact data will be released on Tuesday. The Richmond Fed index stands out. On Wednesday it will be the turn of the preliminary PMI report for Europe and the US and the minutes of the last FOMC meeting. The officials of the fed They continue to speak publicly about the need to continue raising the interest rate, although they warn that the pace of the rise could be reduced.
Despite the rise in XAU/USD, the short-term bias still favors a bearish direction. The key level is around $1,750, which in addition to being horizontal resistance, is where a short-term downtrend line is passing through. If it breaks above, the bias could become neutral/bullish. In the opposite direction, if it loses $1,730, the bearish pressure could intensify.
technical levels
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.
