Gold Price Analysis: XAU/USD consolidates rebound above $1800 as US dollar remains under pressure
|- Gold is having the best day in weeks, holds onto gains around $1810.
- Higher US Yields limits the rally in XAU/USD.
Gold is holding onto important daily gains as it hovers around $1810, up by more than $30 from Monday’s close. It is having the best day in weeks.
The price of the metal jumped during the European session and peaked at $1814 before retreating to $1804. The rebound was driven by a correction, some profit-taking and a weaker US Dollar.
The positive momentum in gold eased despite the sharp decline of the US dollar and risk appetite on the back of higher US yields. The 10-year jumped to 0.925%, the highest level since mid-November.
The DXY dropped below 91.40 during the Americana session, to the lowest level since 2018. The recovery of the US dollar was short-lived and the US dollar resumed the downside during the American session but gold did not rally further, holding onto recent gains.
From a technical perspective, the rebound in XAU/USD back above $1800 alleviated the bearish pressure. The next resistance is seen at $1818/20 followed by the $1850 area. A slide back under $1800 would point to more pressure to the downside exposing the recent low at $1764.
Technical levels
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