XAU/USD hits two-week highs
Metals are rising considerably boosted by lower US yields on Friday. Gold broke above $1800 and is testing a key short-term resistance area around $1810. A firm break higher could trigger more gains. Economic data from the US came in above expectation with payrolls rising by 531K in October above the 425K of market consensus. The greenback rose initially but then, during the American session pulled back and reversed its course, amid a sharp decline in US bonds and as equity prices rise. The US 10-year yield fell from 1.54% to the lowest in a month at 1.45%.
Gold peaked at $1812, the highest in two weeks. It is trading around $1810 and a firm break above would put the price at the highest in almost two months, targeting the next resistance at $1820. A failure to break above $1810 would leave gold vulnerable to a bearish correction. Support levels are located at $1795, $1785, and then $1770.