Gold extends retreat from weekly highs, falls below $1410
|- Risk appetite and higher US yields weigh on XAU/USD.
- Gold falls more than $15, cuts to half yesterday’s gains.
Gold prices are falling significantly on Thursday amid a recovery of the US Dollar supported by higher US yields. Risk appetite weighs on the metal and also on JPY and CHF.
During the Asian session, gold reached a 1-week high at $1426.90/oz. After spending a few hours above $1420 it broke lower and accelerated to the downside. US inflation data also added pressure. During the American session bottomed at $1408 and as of writing it is hovering around $1410, down almost $15 from yesterday’s close.
Today’s slide cut to half Wednesday’s gains when it jumped from $1394 after Fed’s Chair Powell comments that reinforced rate cut expectations. US yields on Thursday are rising significantly back to yesterday’s highs. The 10-year stands at 2.10% after opening the day at 2.04%. In Wall Street, the DOW JONES gains 0.75%, and the S&P 500 trades at 3,000 up 0.24%, near all-time-highs.
Limited under $1,425
From a technical perspective, the area around $1,420/25 continues to be a critical resistance. XAU/USD traded on top, but it failed to post a daily close above. If it manages to consolidate at higher levels, it would point to further gains. On the flip side, $1,405 and $1,399 are the immediate support levels. The critical one stands at $1,391 the 20-day moving average. A close below could trigger further corrective moves.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.