- Gold rises as Wall Street corrects lower on Wednesday.
- XAU/USD peaked at $1817/oz and pulled back to $1810.
Gold prices are rising modestly after losing around $70 during the previous two trading days on the back of risk appetite. Equity markets are pulling back on Wednesday with the Dow Jones retreating after hitting levels above 30,000 for the first time on Tuesday.
A considerable amount of economic reports were released in the US. Initial jobless claims unexpectedly rose to 778K, the highest level in five weeks. A new reading of Q3 GDP confirmed the 33.1% annualized reading. New home sales dropped 0.3% in October. Personal income surprised with a 0.7% decline and personal spending rose 0.5% in October.
Now traders await the minutes of the November 4-5 Fed meeting, the last critical event ahead of the Thanksgiving holiday.
Wall Street is posting mixed results. The Dow Jones drops by 0.40% and the Nasdaq gains 0.22%. Both indexes are holding onto recent gains boosted by COVID-19 vaccine expectations and the US presidential transition developments.
From a technical perspective, gold remains with a bearish bias although the $1800 barrier is holding firm. The rebound from the lows looks like a modest correction so far. The next resistance stands at $1820, followed by $1850. On the flip side, a break under $1800 could trigger more losses and volatility.
Technical levels
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