Gold rises after 3-day slide, consolidates gains near $1290

Matías Salord FXStreet

Gold extended gains during the American session and is up for the day after falling during the previous three days. The value of the ounce is hovering slightly below $1,290. Earlier today bottomed at $1,276.40, the lowest since October 9.

Weak USD, some risk aversion?

The yellow metal pulled back modestly after the release of US economic data that showed better-than-expected numbers. Initial jobless claims dropped to the lowest since 1973 while the Philly Fed rose unexpectedly. The greenback rose in the market, but the recovery was short-lived.

Philly Fed: Manufacturing firms reported continued growth in October

US: Weekly initial claims was 222,000, a decrease of 22,000 from previous week

After falling to $1,283.50 gold rose back toward $1,290. At the moment of writing it was holding near the highs, holding a bullish tone.

The US Dollar Index dropped below 93.00, to the lowest since Monday and is back to the level it had at the beginning of the week. In Wall Street, the Dow Jones is falling 0.21% after moving off daily lows, but still shows a downside bias. US bonds are up today adding some support to gold.

XAU/USD key levels

To the upside, the immediate resistance is seen at $1,290.20 (daily high) followed by $1,296 (Oct 17 high) and $1,300 (55-day moving average). On the flip side, supports might be located $1,284 (American session low), $1,276 (daily low) and $1,270 (Oct 4 low).

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.

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