Gold rises further above $1520, hits two-week highs
- XAU/USD climbs to $1,526/oz, the highest level since September 6.
- Risk aversion, lower US yields support higher gold prices.
Gold broke to the upside during the American session and extended gains. It reached at $1,526 the strongest level in two weeks. As of writing trades at $1,523 up almost ten dollars from Friday’s close.
Lower US yields and some risk aversion across financial markets increased the demand for safe-haven assets. The Yen and the Swiss Franc are among the top currency performers on Monday. Regarding yields, the US 10-year fell to 1.668%, the lowest intraday level in almost two weeks.
Data from the US came in mixed. The Markit PMI showed better-than-expected numbers from the Manufacturing sector while at the same time, a larger slide than market forecasts of the service sector. The Composite Index rose from 50.3 to 51.0. Earlier today, the Eurozone PMIs surprised to the downside.
XAU/USD extends the rebound from $1,480
The short-term outlook points to further gains as long as price holds on top of $1,520. Last week, again, XAU/USD found support around the $1,1480/85 zone and bounced to the upside. Today is breaking above last week highs, signaling further gains ahead.
To the upside, the next resistance levels might be seen at $1,530 followed by $1,535 and $1,545. On the flip side, now $1,515 should be seen at the immediate support and then $1,506 that protects $1,490 and the critical support $1,480.
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.
