- XAU/USD focuses on the negative due to incapable of rising above $1490 focuses.
- Bearish bias backed up by higher US yields and recovery considering the Greenback.
Gold was powerless to hold profits and sloped back, approaching the $1480 area. Earlier today, the ounce rose to $1488 and also as of writing trades at $1483, flat for the entire day but now with a bearish intraday bias.
The recovery from $1480 was capped below $1490. XAU/USD until now holds above the vital short-term support seen at $1480. A consolidation below would point towards further losses. The chart still favors the negative. A transparent recovery above $1500 could eliminate the bearish bias, targeting levels near $1520 (intermediate resistance at $1510).
The negative bias remains supported today by the correction made up of the American dollar across the board and likewise on the back of higher US yields. The 10-year is repeatedly running to the 1.80% level.
“Gold, silver, and platinum experienced a relatively poor week, having the complex dropping on average, as the market mused about the possibility that any Fed rate cuts are probably not coming anytime soon, after the October reduction. Improving equity valuations and decent US data also played a part in depressing gold and silver, with technical pointing to the downside in the near term”, explained analysts at TD Securities.