Gold Price Analysis: XAU/USD to suffer additional losses on a daily close below $1,820
|Gold fluctuated sharply as investors assessed the latest inflation data from the US. XAU/USD retreats below $1,830 and is set to extend its slide on a break below the $1,820 level, FXStreet’s Eren Sengezer reports.
See – Gold Price Analysis: XAU/USD set to surpass the 2020-2021 trendline at $1865 – Commerzbank
10-year US T-bond yield is up more than 2% on Wednesday
“The US Bureau of Labor Statistics reported that the Consumer Price Index (CPI) jumped to 4.2% on a yearly basis in April from 2.6% in March. This reading came in much higher than the market expectation of 3.6% and provided a boost to the US Treasury bond yields. At the moment, the benchmark 10-year US T-bond yield is up 2.3% at 1.663%.”
“On the downside, $1,820 (Fibonacci 50% retracement of the January-March downtrend) aligns as the first support. A daily close below that level could open the door for additional losses toward the key support at $1,800 (psychological level, 100-day SMA) and $1,790 (20-day SMA).”
“Resistances are located at $1,850 (Fibonacci 61.8% retracement level, 200-day SMA) and $1,860 (static level).”
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