Gold: Another multi-year high for XAUD/USD at $1870/oz
- XAU/USD rose further, reaching levels last seen back in September 2011.
- Greenback consolidates losses across the board, DXY heads for lowest close since September 2018.
The XAU/USD now spiked to $1,870 reaching a fresh multi-year high. The ongoing rally in gold prices remains firm as the greenback holds onto recent losses. From the top the yellow metal pulled back modestly and it is trading at $1,865; more than a hundred dollar above the level it had a month ago.
Gold is about to post the fourth daily gain in a row. Many analysts warn the rally could go on and test soon the $1,900 area. Above the next critical level is the record high around $1,920.
The slide of the US Dollar supports more gains in gold. The US Dollar Index fell to under 95.00 for the first time since March and is approaching the 2020 intraday low. An improvement in market sentiment on COVID-19 vaccine hopes and following the EU recovery fund agreement, and lower US yields weigh on the greenback.
Silver (XAG/USD) is up by almost 7%, trading at 22.75, the strongest level since 2013. Both metals continue to rally despite extreme overbought readings that technical indicators show. The bullish momentum appears intact.
Technical levels