Gold Price Analysis: XAU/USD drops further to $1770 ahead of critical support
|- Gold extends losses, hits four-day lows as market sentiment deteriorates.
- XAU/USD back near critical medium-term support around $1765.
Gold dropped further during the American session and bottomed at $1769, the lowest level since last Friday. The metal erased weekly gains and is back below $1780 as US yields keep rising.
The US 10-year yield stands at 1.479%, a new one-year high. At the same time, stocks in Wall Street turned negative. The Dow Jones is falling by 0.35% and the Nasdaq 1.20%.
The decline in gold has been limited so far on the back of a mixed US dollar. The greenback is down versus main European currencies and up against the yen. Better-than-expected US economic data did not help the greenback.
Tensions mounts ahead of critical level
Gold is back near the $1760/70 area that capped the downside in November and earlier in February. A consolidation below could open the doors to a bearish acceleration, and a potential slide toward $1700.
If XAU/USD manages to keep $1770, it could rebound and contain the weakness. On a daily close above $1815, the bearish pressure will ease significantly.
Technical levels
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