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  • XAU/USD gains for the second day in a row.
  • Gold rises $50 in two days, remains at one-week highs.

Gold prices are modestly higher con Wednesday, consolidating the bounce from multi-month lows. XAU/USD peaked during the European session at $1831/oz, the highest level since November 23 and then pulled back finding support above $1810.

Over the last hours, gold has been moving sideways consolidating recent gains, trading around $1820. The close on Tuesday above $1800 added support to the recovery from the $1764 bottom of Monday, the weakest level since early July.

The move higher was limited probably by higher US yields. The 10-year yield stands at 0.95%, the highest in three weeks. The DXY trades flat around 91.20.

Next key level: $1850

The positive momentum in gold remains intact in the very short-term. Above $1820 more gains seems likely. The next critical level is the $1850 zone, the previous key support. If the metal climbs above, it would gains a relevant support to extend gains.

On the flip side, a decline back below $1800 would expose the recent low at the $1765 area.

Technical levels