Gold Price Analysis: XAU/USD eyes $1800 as US dollar weakens
- A decline of the US dollar and lower US yields boost metals.
- XAU/USD approaches $1800/oz, at its highest since late February.
Gold gained more than $10 over the last hour and hit at $1797, the highest level since February 25. It then pulled back and it is hovering around $1790, up 0.65% for the day. Silver gains more than 2%.
A correction of the US dollar and lower US yields boosted metals sharply. Over the last minutes, yields rebounded, alleviating the bullish momentum of metals. The US 10-year yield bottomed at 1.55% and then rose to 1.58%. The US Dollar Index failed to holds onto the recent recovery and is back into negative territory, at 91.15.
Also, an improvement in market sentiment helped gold. After the opening bell in Wall Street, the main stock indexes turned positive. The Dow Jones is up by 0.55% and the Nasdaq 0.20%.
Gold is posting the fourth daily gain out of the last five trading days. Since Friday it rose more than $50 and now is looking at the $1800 area. The next strong barrier above is located at $1815.
The yellow metal continues with the bullish run after testing during the last week of March the YTD low around $1677. A correction in XAU/USD could find support initially at $1779, followed by $1762 and the 20-day moving average, today at $1740.
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.
