Gold Price Analysis: XAU/USD retreats after approaching $1750
- Higher US inflation lifts gold from weekly lows.
- XAU/USD unable to reach $1750, trims gains.
Gold prices are on a volatile session after bouncing from a one-week low to a two-day high in a few hours. On European hours, XAU/USD bottomed at $1723/oz, the lowest since April 4, and recently reached $1749. As of writing, the metal is hovering around $1740, up ten dollars for the day.
The sharp rebound started following US inflation data. The higher-than-expected reading weakened the US dollar and pushed US yields to the downside. The 10-year stands at 1.65%, far from the 1.70% high. In Wall Street, stocks are mixed.
Gold and the $1750/55 area
The upside move in gold eased when it approached the $1750/55 area that is a critical technical level. A consolidation clearly above would clear the way to further gains in the metal. Despite the recent pullback, the short-term outlook improved after the rally of more than $20 from the lows.
A decline back below $1735 could suggest more weakness ahead, while under $1730, a test of the daily low seems likely.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
