- Gold rebounds as the US Dollar retreat in the market despite higher US yields.
- Price continues to move sideways between $1190 and $1210.
Gold benefited from US dollar weakness on Wednesday and rose modestly, also supported by risk appetite. It gained 0.3% over the day, rising back above $1,200/oz.
The yellow metal opened around $1,198 and peaked before the US session at $1,206, the highest level since last Friday but lost strength. It pulled back but managed to hold on top of $1,200. Near the end of the session was hovering around $1,203 holding a modestly positive tone but still within a range, with the dominant trend still pointing lower. Volatility continues to be limited with XAU/USD unable to move significantly away from the $,1200 zone.
Technical outlook
“With the metal still neutral according to the daily chart, where indicators remain horizontal around their midlines, and as the price keeps hovering around a flat 20 DMA and well below a bearish 100 DMA, this last at 1,235.60”, says Valeria Bednarik, Chief Analyst at FXStreet.
According to her, in the short-term, the 4 hours chart shows XAU/USD settled above a congestion of moving averages, all together in a $2 range, while technical indicators lost directional strength after entering positive territory, also offering a neutral stance. “A more solid advance past 1,208.75 could be an encouraging sign for bulls.”
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