- 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.
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