Gold Price Analysis: XAU/USD rebounds more than $40, rises above $1,940
- Gold bounces sharply from two-week lows, hits two-day highs.
- Volatility in gold soars but remains limited for some assets ahead of Jackson Hole Symposium.
Gold prices have risen more than $40 an ounce during the American session so far. XAU/USD bottomed at $1,902/oz following the release of US economic data, in line with the USD peak. From the $1,900 area, it rebounded sharply, and it is trading at $1,944, the highest level since Monday.
A retreat of the US dollar across the board triggered the rally in XAU/USD. The DXY spent most of its time in positive territory, but it failed to hold to gains. It peaked at 93.36 after the better-then-expected US Durable Goods Orders report, and now it is about to drop under 93.00.
In Wall Street, equity prices are mixed. The Nasdaq and the S&P500 hit new record highs and are up 0.95% and 0.35% respectively, but the Dow Jones losses 0.21%. Crude oil is also on a volatile session. The WTI is down marginally for the day after reaching a fresh multi-month high at $43.75.
Silver also rebounded sharply on US hours. XAG/USD found support at $26.00, and it printed daily high above $27.00. It gains 2.65%.
From a technical perspective, the recovery in gold reinforced the $1,900 area as critical short-term support. The positive intraday momentum will likely remain in place while above $1,930. The next resistance stands at $1,950/55. A consolidation above would open the door to more gains.
Technical levels