Gold Price Analysis: XAU/USD rebounds and prints a new multi-year high above $1890
- The US dollar weakened again and helped XAU/USD rise toward new highs.
- Gold’s bullish momentum remains intact despite overbought readings.
The rebound of the US dollar was short-lived and near the London fix it resumed the decline, sending XAU/USD to $1,891/oz, the new cycle high. The yellow metal is hovering around $1,890, levels last seen back in 2011.
The US Dollar Index (DXY) turned again to the downside and printed a fresh four-month low below 94.80. It is falling by 0.20% and is about to test the 2020 intraday low reached on March 9 at 94.65. If it breaks below that level, it would be trading at the lowest since September 2018. The demand for gold is receiving an extra impulse from a weaker US dollar.
Gold is extending the bullish trend that remains intact, with no signs of a correction. Above $1,890, a test of $1,900 seems likely. Volatility could rise if the mentioned level is reached. Above, the next target would be the all-time high near $1,920.
XAU/USD is extending gains despite the pullback in other commodities. Silver (XAG/USD) is falling 0.40%, after being rejected from above 23.00, but it is moving off lows.
Gold 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.
