XAU/USD hits fresh daily highs, stays range-bound

• A decline of the US dollar triggers more gains in XAU/USD.
• Gold remains in range, on a consolidation mode around $1810.

Gold is rising on Friday, erasing yesterday’s losses. It climbed to $1810 and as of writing, it trades at $1807, about to post the highest weekly close since 2011.

A weaker US dollar on Friday boosted the yellow metal. The DXY dropped back toward 96.00, unable to hold onto recent gains. The greenback weakened further during the American session following a decline in US consumer confidence and despite a modest bounce in US yields. Equity prices in Wall Street are mixed on a session with limited price action volatility.

Gold in range around $1800

On a wider perspective, gold continues to move sideways, in a range near multi-year highs. It is about to end the week with modest gains, posting the highest weekly close since 2011. During the current week, it did not reach new highs but at the same time, corrections were limited.

XAU/USD is facing resistance at $1815, the upper limit of the current range. A confirmation above would clear the way to more gains and to fresh multi-year highs. On the flip side, $1800 is an intermediate support that protects the bottom of the range around the $1795 zone. A consolidation below $1795 would set the tone for a bearish correction.

Technical levels