- Rallying US bond yields, stronger USD continued exerting heavy pressure on gold.
- The upbeat market mood also did little to lend any support to the safe-haven metal.
- Break below the $1800 mark might have already set the stage for further weakness.
Gold dropped to two-month lows during the early North American session, with bears now looking to extend the downward trajectory below the $1800 mark.
The precious metal witnessed heavy selling for the third consecutive session on Thursday and was pressured by a combination of factors. The US Treasury bond yields continued scaling higher amid firming expectations for a massive US fiscal spending, which, in turn, drove flows away from the non-yielding yellow metal.
The US bond yields rose further following the release of better-than-expected US Initial Weekly Jobless Claims. Positive US economic data, along with the progress with coronavirus vaccinations lifted hopes for a strong economic recovery and benefitted the US dollar. This was seen as another factor weighing on the dollar-denominated commodity.
Meanwhile, the optimism remained supportive of the underlying bullish sentiment in the financial markets, which did little to lend any support to the safe-haven XAU/USD or stall the ongoing decline. With the latest leg down, the commodity has confirmed a bearish below the $1800 mark and remains vulnerable to extend the depreciating move.
Technical levels to watch
|Today last price||1795.2|
|Today Daily Change||-37.80|
|Today Daily Change %||-2.06|
|Today daily open||1833|
|Previous Daily High||1845.02|
|Previous Daily Low||1829.68|
|Previous Weekly High||1875.7|
|Previous Weekly Low||1831.36|
|Previous Monthly High||1959.42|
|Previous Monthly Low||1802.8|
|Daily Fibonacci 38.2%||1835.54|
|Daily Fibonacci 61.8%||1839.16|
|Daily Pivot Point S1||1826.78|
|Daily Pivot Point S2||1820.56|
|Daily Pivot Point S3||1811.44|
|Daily Pivot Point R1||1842.12|
|Daily Pivot Point R2||1851.24|
|Daily Pivot Point R3||1857.46|
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