Gold Price Analysis: XAU/USD drops further to $1770 ahead of critical support


  • Gold extends losses, hits four-day lows as market sentiment deteriorates.
  • XAU/USD back near critical medium-term support around $1765.

Gold dropped further during the American session and bottomed at $1769, the lowest level since last Friday. The metal erased weekly gains and is back below $1780 as US yields keep rising.

The US 10-year yield stands at 1.479%, a new one-year high. At the same time, stocks in Wall Street turned negative. The Dow Jones is falling by 0.35% and the Nasdaq 1.20%.

The decline in gold has been limited so far on the back of a mixed US dollar. The greenback is down versus main European currencies and up against the yen. Better-than-expected US economic data did not help the greenback.

Tensions mounts ahead of critical level

Gold is back near the $1760/70 area that capped the downside in November and earlier in February. A consolidation below could open the doors to a bearish acceleration, and a potential slide toward $1700.

If XAU/USD manages to keep $1770, it could rebound and contain the weakness. On a daily close above $1815, the bearish pressure will ease significantly.

Technical levels 

XAU/USD

Overview
Today last price 1775.82
Today Daily Change -26.80
Today Daily Change % -1.49
Today daily open 1802.62
 
Trends
Daily SMA20 1816.68
Daily SMA50 1850.56
Daily SMA100 1861.45
Daily SMA200 1860.09
 
Levels
Previous Daily High 1813.88
Previous Daily Low 1783.62
Previous Weekly High 1827.11
Previous Weekly Low 1760.72
Previous Monthly High 1959.42
Previous Monthly Low 1802.8
Daily Fibonacci 38.2% 1795.18
Daily Fibonacci 61.8% 1802.32
Daily Pivot Point S1 1786.2
Daily Pivot Point S2 1769.78
Daily Pivot Point S3 1755.94
Daily Pivot Point R1 1816.46
Daily Pivot Point R2 1830.3
Daily Pivot Point R3 1846.72

 

 

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