Gold jumps toward $1990, rebounds $50 from daily lows

• DXY keeps falling, approaching YTD lows while commodities rise.
• Gold broke a key technical short-term resistance, hitting six-day highs.

A slide of the US dollar across the board booted gold prices that rose $50 from the daily low toward the $1990. XAU/USD reached at $1,989.45/oz the highest level since August 11.

The yellow metal had now recovered more than half the losses from the collapse of last week, when it dropped from $2030 to $1860. The rebounded gained speed after the beginning of the American session on the back of a weaker US dollar and also boosted by technicals.

The price broke above the $1960 area that capped the upside on Thursday and Friday. The bullish tone will likely remain in place as long as it holds above $1,965. Above $1,990 the next strong resistance might be seen at $2,015.

Silver is also rising sharply, up by more than 5%, hovering around $27.50. The slide of the dollar even benefits crude oil prices. The WTI barrel is testing levels above $42.50. The US Dollar Index is falling for the fourth day in a row but still remains above the recently cycle low it reached slightly above 92.50. It is trading at 92.80, down 0.25%.

Gold technical levels