Gold drops back towards 3.5-months lows amid higher Treasury yields


  • Better risk sentiment on upbeat China data, higher Treasury yields keep the recovery limited.
  • Technical set up continues to remain in favor of the bears.

Gold (futures on Comex) faded the Asian bounce and dropped back towards the three-and-a-half month lows reached at 1275.55 in the US last session after the US dollar rallied across the board in tandem with the US stocks and Treasury yields amid upbeat US earnings reports.

The yellow metal attempted a tepid bounce earlier today following upbeat economic releases out of China, the world’s biggest gold consumer. Stronger Chinese data reduced the demand for the US currency amid risk-on and helped the gold recovery.

However, the recovery faltered near 1282 levels in the European session, as the bears regained control amid a rally in Treasury yields across the curve, especially with the 10-year yields clocking monthly tops while the European stocks and the US equity futures also kept the buoyant tone intact.

Further, the technical set up also continues to back the ongoing bearish bias, “as the yellow metal confirmed a descending triangle breakdown with a close at $1,276 yesterday. The breakdown has reinforced the bearish view put forward by the lower highs pattern and the downward sloping 10-day moving average. As a result, gold appears on track to test support at $1,262 (trendline connecting August and November lows),” Omkar Godbole, FXStreet’s Analyst explains.

Gold Technical Levels

XAU/USD

Overview
Today last price 1277.1
Today Daily Change -2.17
Today Daily Change % -0.17
Today daily open 1278.27
 
Trends
Daily SMA20 1298.39
Daily SMA50 1305.35
Daily SMA100 1288.97
Daily SMA200 1248.32
Levels
Previous Daily High 1288.95
Previous Daily Low 1273.05
Previous Weekly High 1310.7
Previous Weekly Low 1288.7
Previous Monthly High 1327.8
Previous Monthly Low 1280.1
Daily Fibonacci 38.2% 1279.12
Daily Fibonacci 61.8% 1282.88
Daily Pivot Point S1 1271.23
Daily Pivot Point S2 1264.19
Daily Pivot Point S3 1255.33
Daily Pivot Point R1 1287.13
Daily Pivot Point R2 1295.99
Daily Pivot Point R3 1303.03

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD falls below 1.1250 as US retail sales beat expectations

EUR/USD is trading below 1.1250, extending its slide. US retail sales beat expectations with the control group rising by 0.5% in May on top of upward revisions. US-Sino trade tensions are in play.

EUR/USD News

GBP/USD falls towards 1.2600 after US retail sales

GBP/USD is trading closer to 1.2600, around the weekly lows. US retail sales beat expectations and trade tensions also boost the USD. The UK is bracing for Boris Johnson to become PM. US consumer confidence is next.

GBP/USD News

USD/JPY climbs to mid-108s as 10-year US T-bond yield erases losses

Today's upbeat macroeconomic data releases from the United States provided a boost to the greenback and allowed the USD/JPY pair to advance to a session top of 108.50.

USD/JPY News

Gold surges through $1350 level, highest since April 2018

Gold caught some aggressive bids in the last hour and surged to the highest level since April 2018, around the $1358 region.

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Alone in the dark of outer space...heading to the Moon

It is almost usual practice of the Crypto market that technical extremes occur at the end of the working week – setting the stage for action over the weekend.

Read more

Majors

Cryptocurrencies

Signatures