Gold Price Forecast: XAU/USD jumps toward $1850 as US yields slide on risk aversion
|- Gold rises to the highest level in four days, eyes $1850.
- Silver erases losses, and approaches Wednesday's high near $21.90.
- US yields slide as demand for Treasuries picks up amid risk aversion.
Gold gained momentum boosted by a context of risk aversion and a weaker US dollar. XAU/USD rose from under $1820 to the $1850 area.
In Wall Street, stocks are falling sharply. The Dow Jones is losing 2.50% while the Nasdaq drops by more than 4%. Recession concerns are driving prices lower. At the same time, the demand for safe-haven assets boosted Treasuries. The US 10-year yield pulled back from 3.49% to 3.32%.
The US dollar is falling versus its G10 rivals, particularly against the Swiss franc and the yen. The DXY drops by 0.90%, and trades below 105.00.
The combination of lower yields and a weaker dollar pushed XAU/USD to the upside. The yellow metal trades at $1846, the highest level since Monday and is looking at the $1850. A break above could open the doors to more gains.
XAG/USD also hit multi-day highs at $21.89. Earlier on Thursday, bottomed at $21.35. On the contrary, cryprocurrencies remain under pressure. Bitcoin continues to trade dangerously close to the $20,000 level.
Technical levels
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