- Gold rises back above $1830, could post the highest week close since November.
- US dollar drops across the board after Thursday’s rally.
Gold rose further during the American session and climbed to $1836, reaching a fresh daily high. It remains near the top with a bullish tone. The upside move started after finding support again above $1820.
If XAU/USD ends at current levels, it will post the highest weekly close since November, with a gain of around $20.
Gold holding so far despite yields
The extreme volatility on Thursday proves that the road to the upside is bumpy and vulnerable for gold. Gold is holding relatively well, considering that yields on Thursday reached fresh multi-year highs. Although, yields look to warrant sharp and quick corrections.
Many analysts warn the outlook for gold is negative taking into account that US yields will continue to rise. But if gold holds at current levels, it could reflect some underlying strength.
Support at $1820
From a technical perspective, in the short-term, the immediate support stands at $1820; a break lower would point to a deeper slide toward $1800. A daily close below $1790 should point to further losses and to a potential decline toward $1750.
On the upside, the next barrier is seen at $1845/50. If XAU/USD rises above, the next target is seen at $1870.