Breaking: Gold plummets to two-month lows, below $1800 mark


  • 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

XAU/USD

Overview
Today last price 1795.2
Today Daily Change -37.80
Today Daily Change % -2.06
Today daily open 1833
 
Trends
Daily SMA20 1850.78
Daily SMA50 1857.93
Daily SMA100 1874.71
Daily SMA200 1853.06
 
Levels
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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