Gold rebounds from $1400, erases daily losses as US Dollar retreats
- After losing more than $30 in less than 24 hours, XAU/USD finds support at $1400.
- Yellow metal climbs back above $1410, flat for the day.
A day ago, Gold was trading above $1430/oz and recently it bottomed at $1400, the lowest level since July 17. After the beginning of the American session, it stabilized and recently jumped higher, amid a decline of the US Dollar across the board.
The greenback weakened further following the release of the ISM PMI report that came in below expectations. Also, a sharp decline in US yields contributed to the slide of the Dollar. The 10-year tumbled to 1.95%, approaching July lows. Equity prices in Wall Street accelerated to the upside over the last hour. The DOW JONES almost 1%, still below the level it had before the Fed rate cut.
The decline in gold found support at the key $1400 area. Then rebounded sharply, erasing all of the day’s losses. Currently is testing the $1415 area, around the same level it closed yesterday.
The short-term outlook favors now, after the significant rebound. A decline back below $1410, would expose again the $1400 zone. On the upside, the next resistance is seen around $1422 followed by $1430.
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.
