- Metals are rising sharply, amid risk appetite, a weaker dollar and a retreat in US yields.
- XAU/USD testing the $1810 resistance area.
- Price heads for a weekly close above the 20-week moving average.
Gold is rising sharply on Friday, extending weekly gains. The ounce gains more than $20 and recently reached at $1812, the highest level since mid-September. It remains near the top, with the bullish momentum intact.
Metals are posting important gains on Friday. The rally is being reinforced by a correction of the US dollar and a modest recovery in US bonds. The 10-year yields pulled back to 1.65% from 1.69%. Stocks in the US are mixed but off lows, also helping commodities.
Levels to watch
If XAU/USD holds firms above $1811 it could clear the way to additional gains, targeting the $1820 level. Above attention would turn to the critical resistance band at $1830/35 (July, August and September highs) that if broken, would strengthen then medium-term outlook.
On the flip side, a slide under $1800 would alleviate the bullish pressure while under 1790$ should warn about a potential reversal.