Gold rebounds from $1400, erases daily losses as US Dollar retreats
|- After losing more than $30 in less than 24 hours, XAU/USD finds support at $1400.
- Yellow metal climbs back above $1410, flat for the day.
A day ago, Gold was trading above $1430/oz and recently it bottomed at $1400, the lowest level since July 17. After the beginning of the American session, it stabilized and recently jumped higher, amid a decline of the US Dollar across the board.
The greenback weakened further following the release of the ISM PMI report that came in below expectations. Also, a sharp decline in US yields contributed to the slide of the Dollar. The 10-year tumbled to 1.95%, approaching July lows. Equity prices in Wall Street accelerated to the upside over the last hour. The DOW JONES almost 1%, still below the level it had before the Fed rate cut.
The decline in gold found support at the key $1400 area. Then rebounded sharply, erasing all of the day’s losses. Currently is testing the $1415 area, around the same level it closed yesterday.
The short-term outlook favors now, after the significant rebound. A decline back below $1410, would expose again the $1400 zone. On the upside, the next resistance is seen around $1422 followed by $1430.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.