Gold hits fresh multi-year highs, looks to $1800
- XAU/USD resumed the upside after making a pullback to $1792.
- Positive momentum for gold remains intact, a test of $1800 seems likely.
Gold is hitting new highs slightly below $1,800/oz. XAU/USD climbed to $1,797 hitting the highest level since 2011. Price is hovering near the recent top and looking at the $1,800 area.
In Wall Street, the Dow Jones is falling 0.70% and the S&P 500 0.30%. The Nasdaq is up by just 0.07%. Regarding yields, the US 10-year stands at 0.651%, the lowest since June 30.
The combination of some risk aversion and lower US yields continue to offer support to gold. The metal is also boosted by technical factors after breaking on Tuesday above previous highs and following a rebound from $1,777.
If XAU/USD rises above $1,800 more gains seem likely. The move could also trigger an increase in volatility in either direction. On the upside, the next strong resistance stands around $1,825. On the flip side, now $1,787 is the immediate support followed by the $1,770 area.
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.
