Gold (XAU/USD) plunged to its lowest level since June 2020 at $1,717 and lost more than 3% on a weekly basis. In the new week, a correction in US T-bond yields could help XAU/USD recover toward the $1,780 level, FXStreet’s Eren Sengezer reports.

Key quotes

“Investors are likely to remain focused on developments surrounding US Treasury bond yields. The 10-year US T-bond yield gained more than 35% in February alone and it's up nearly 50% since the beginning of the year but a significant hurdle is located around 1.5% level. A deep correction in yields could put the USD under heavy selling pressure and trigger a strong rebound in XAU/USD and vice versa.”

“Unless XAU/USD manages to make a daily close above the descending trend line coming from January 6, currently located around $1,780, sellers could look to remain in control. Above $1,780, next resistance is located $1,800 (psychological level/20-day SMA) ahead of $1,820 (static level).”

“The initial support could be seen at $1,717 (February 26 low) before $1,700 (psychological level). Below those levels, $1,680, which acted as strong support in April, May and June of 2020, is the next target.”

 

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD rises above 1.0900 after upbeat EU data

EUR/USD rises above 1.0900 after upbeat EU data

EUR/USD has gained traction and climbed above 1.0900 in the European session after the upbeat sentiment data from the Eurozone area helped the Euro gather strength. Meanwhile, the US Dollar stays on the back foot despite the cautious market mood. 

EUR/USD News

GBP/USD gains traction, trades above 1.2400

GBP/USD gains traction, trades above 1.2400

GBP/USD has gathered recovery momentum and advanced beyond 1.2400 on Monday. The modest selling pressure surrounding the US Dollar ahead of key central bank policy announcements later this week seems to be helping the pair push higher.

GBP/USD News

Gold finds support, rebounds to $1,930 area

Gold finds support, rebounds to $1,930 area

Gold price has recovered toward $1,930 and erased its daily losses. With the benchmark 10-year US Treasury bond yield gaining more than 1% on the day above 3.5%, however, XAU/USD is struggling to gather further bullish momentum.

Gold News

Why Ethereum bears need to be cautious about shorting ETH before $2,000

Why Ethereum bears need to be cautious about shorting ETH before $2,000

Ethereum price has been consolidating after the January rally subsided after three weeks. This tightening continues even after BTC shot up 3% over the weekend. Therefore, a short-term spike in buying pressure should is likely. 

Read more

Big risk this week Fed hikes 50 points

Big risk this week Fed hikes 50 points

While the entire global investment community is apparently very excited about the US Fed slowing its rate increases to 25 bps, there are strong reasons for arguing why another 50 bps rate hike, or two, are still on the menu.

Read more

Forex MAJORS

Cryptocurrencies

Signatures