Gold Price Analysis: XAU/USD rebounds from near $1855 toward $1880

• Gold rebounds further from the weekly bottom, shows difficulties holding above $1870.
• Weaker dollar keeps XAU/SUD off lows, unclear bias.

Gold is rising on Wednesday on the back of a weaker US dollar and amid an improvement in market sentiment. Speculations about a Brexit deal boosted markets and the demand for riskier assets.

XAU/USD bottomed at $1857 before rising to $1878, boosted by the improvement in market sentiment. In Wall Street, the Dow Jones gains 0.68%, and the S&P500 rises by 0.45%. The DXY dropped further during the American session to the 90.00 area.

From a technical perspective, gold is moving without a clear bias. It still has been unable to fully recover from the sharp reversal that took place on Monday when XAU/USD tumbles from above $1900 to $1855. The $1855 area was tested again on Wednesday but it held; a consolidation below would clear the way to more losses.

On the upside, if the price manages to hold above $1875, the metal could gain strength for a test of the next strong resistance seen at $1885 that protects the $1900 area.

Technical levels