Gold Price Analysis: XAU/USD hits fresh two-month highs, remains below $1800
- Metals are having a volatile US session, testing psychological levels.
- Gold fails to break above $1800 and losses momentum.
Gold is rising marginally on Tuesday, on a volatile session. The ounce jumped to $1799, hitting a fresh two-month high but it then pulled back, falling to $1790. As of writing it trades at $1795, near the same level it closed on Monday.
Earlier, XAU/USD bottomed at $1780 before starting to move to the upside again. The positive tone prevails in gold, although the constant failure at $1800 keeps the door open to sharp corrections. A break above $1800 would likely boost the yellow metal further to the upside and also volatility.
A decline in US yields, and a correction of the US Dollar from daily highs, boosted the move to the upside in gold. The DXY is at 91.17, at the lowest since the Asian session after moving away from the 91.35 area. The 10-year yield stands at 1.56%, the lowest since April 26.
The deterioration in risk sentiment could have limited the upside in gold. The Dow Jones is falling 0.72% and the Nasdaq drops by 2.25%. Silver is flat for the day after testing levels above $27.00, trading at 26.85.
Gold 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.
