Gold Price Analysis: XAU/USD hits two-month highs, still under $1800
- Metals are rising sharply on Monday amid lower US yields and risk appetite.
- Gold approaches $1800/oz and retreats.
Gold is rising by more than 1% on Monday, boosted by a decline in US yields, optimism and a slide of the US dollar. XAU/USD peaked at $1797.88, the highest intraday level since February 25 and then pulled back toward $1790.
The positive tone remains intact in gold, but while under $1800 gains seem limited. The mentioned area capped the upside several times during April and is a key level. A consolidation above would open the doors to an extension of the rally that started late in March from $1670.
A failure at current levels, would leave XAU/USD vulnerable to a deeper correction to the 20-day moving average at $1765. A close below would point to further losses. The next support stands at $1755.
Silver and gold are sharply higher on Monday, as the DXY drops 0.39%, giving up half of Friday’s gains. Lower US yields and economic data weighed on the greenback. The ISM Manufacturing PMI in the US declined unexpectedly to 60.7 from 64.7. The 10-year yield bottomed at 1.58%, before recovering to 1.61%.
Also risk appetite is boosting metals. The Dow Jones rises by 1% and the S&P 500 by 0.42%. On the negative front, Nasdaq drops by 0.28%.
Technical levels