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- Gold rises on Tuesday despite higher US yields.
- XAU/USD manages to hold above 1800$, more gains could lead to a test of 1830$.
Gold prices are rising on Tuesday after strengthening during the American session even as US yields remain high. XAU/USD held above 1800$ and recently climbed to 1814$, reaching a fresh daily high. Gold is trimming Monday’s losses and is attempting to recover levels above 1815$.
If the bounce to the upside in gold continues, the next level to watch is the 1830$ resistance area (interim resistance at 1823$). A close clearly above 1830$ would suggest more gains ahead for the metal. On the flip side, a slide under 1800$ should increase the bearish pressure, targeting 1790$.
The move higher has been driven by an improvement in risk sentiment and also by a broad-base US dollar decline during the American session. The DXY reversed from weekly highs and is now slightly above 96.00, down 0.15% for the day.
Economic data from the US came in below expectation with the December ISM Manufacturing Index at 58.7 below the 60.2 expected and under the 61.1 of the previous months. On Wednesday, the ADP employment report is due and also the Fed will release the minutes from its latest FOMC meeting. The key event will be n Friday with the Non-farm Payroll report.