- Gold bounces, erases losses and looks back towards $ 1900.
- Dollar recovery loses strength, DXY remains below 90.00.
Gold was trading in negative territory most of the day, but in the last hour it rose more than ten dollars and climbed to $ 1888, marking a new high for the day.
The price of the metal remains in the zone of the highs with the bullish tone intact, after having erased the losses of the day. Now the XAU / USD rises for the fourth day in a row, consolidating the bullish run.
Part of the rise is being driven by loss of strength of the dollar. The greenback had been experiencing a slight recovery, after the sharp decline in recent sessions that took the DXY to its lowest since 2018 below 90.00. At the same time, stocks are holding on to recent gains, further supporting XAU / USD.
From a technical point of view, the short-term bullish outlook is firm especially after holding above $ 1870. A dip below would remove some of the bullish tone and already levels below $ 1850 would point to the possibility of further weakness ahead. To the upside, immediate resistance is at Thursday’s highs around $ 1896. The break would enable a return above $ 1900. The next barrier can be seen at $ 1910/15.
Technical levels
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