- XAU/USD continues to recovery from monthly lows, approaches $1,900.
- Improvement in risk sentiment weakens US dollar, DXY holds above 94.00.
The yellow metal is rising modestly on Monday as it continues to recover from the one-month low it hit on Thursday at $,1859/oz. Recently the ounce climbed to $1,895, the strongest since Wednesday. It remains near the top, with the bias pointing to the upside.
Gold is rising supported by an improvement in risk sentiment and amid a mixed US dollar. In Wall Street, the Dow Jones is up by 1.63% and the Nasdaq gains 0.35%. Main indexes are recovering after suffering the worst week since March.
US economic reports surpassed expectation, having no impact on markets. The ISM manufacturing index jumped to the highest in more than two years. The greenback remained unaffected. The DXY is marginally higher as the US dollar gains versus European currencies and the yen, but it corrects lower against commodity link currencies.
From a technical perspective, XAU/USD is moving with an upside bias supported by an uptrend from Thursday’s low that currently stands around $1,880. A break lower should weaken the outlook, exposing the next support at $1,870 that protects the October low at $1,859. On the upside, the immediate resistance is the $1,900 (round number and 20-day moving average) followed by $1,914.
Technical levels
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