Breaking: Gold melts below $1,750, lowest in 8 months amid high Treasury yields
|Gold (XAU/USD) has been extending its downfall as elevated bond yields make the precious metal – which provides no returns – less attractive.
According to the charts, gold is changing hands at the lowest levels since late June 2020 – the lowest in eight months.
The Relative Strength Index on the daily chart is still above 30, thus outside oversold conditions and allows for further fall. XAU/USD recently saw a "death cross" pattern – the 50-day Simple Moving Average crossed the 200-day SMA to the downside, a bearish development.
Here is the updated XAU/USD chart:
It is essential to note that gold is on the back foot despite increases in other metals such as copper and iron. Concerns about inflation have yet to impact the precious metals price to the upside. The S&P 500 is also falling.
Gold Price Forecast 2021: XAU/USD looks to build on 2020 gains with central banks staying dovish
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