- A reversal of the US dollar across the board triggered a rally in XAU/USD.
- Gold jumped $20 from the low, hitting a fresh daily high at $1830.
Metals printed fresh daily highs, offering a complete differed scenario from hours ago. Gold bottomed earlier at $1810 and when it seemed ready to extend the slide, bounced sharply rising to $1830, hitting a fresh daily high.
Near the end of the week, XAU/USD is hovering around $1825, flat for the day and about $10 above the level it had a week ago. Still, some sharp moves seem likely considering that volatility in the forex market surged.
A decline of the US dollar triggered the rally in gold. The DXY dropped from multi-day highs above 90.70 to 90.39 in a few hours. At the same time, US yields move off highs adding support to metals. XAG/USD broke above $27.20 and reached at 27.42 a two day high.
The week is about to end on a soft tone for the US dollar ahead of a long weekend due to a holiday in Monday in the US. Also, the Spring Festival in Asia could keep volume depressed at the beginning of next week.