Gold Price Forecast: XAU/USD hits fresh daily lows under $1,860 on a volatile session
- After a spike higher, gold reverses to the downside and then rebounds to $1,865.
- Volatile session for metals as the US dollar strengthens.
- US economic data surpass expectations, stocks and yields rise.
Gold prices dropped almost $20 from their peak during the last sixty minutes as volatility has soared. XAU/USD hit a fresh five month high at $1,877 and then turned to the downside following US economic data. Recently it bottomed at $1,858, before rising to $1,865. Silver is also affected by volatility. XAG/USD reversed sharply after reaching $25.41 and fell under $25.00.
USD gains on data, metals sideways
US data for both retail sales and industrial production surpassed expectations. The numbers boosted the greenback and also US yields. The 10-year yield climbed to 1.63% a fresh high, and then pulled back. The DXY printed fresh monthly highs above 95.70 and is gaining 0.20%.
Gold was trading higher on the day, at five-month highs before dropping sharply. The upside bias weakened during the last hour and price is testing levels below a key short-term uptrend line. A consolidation below $1,855 should point to a correction. The next relevant support stands at $1,840.
On the upside, if XAU/USD manages to rise again and hold above $1,870, it would keep the doors open to more gains, targeting the next resistance zone around $1,890.
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.
