Gold Price Analysis: XAU/USD hits nine months lows under $1680
- The decline in gold continues after a brief pause, hits multi-month lows.
- XAU/USD under pressure, even as Wall Street soars, reversing sharply.
Gold prices continue under pressure and recently reached at $1679, the lowest level since early June. It then bounced modestly to the upside but remained under pressure about to pots the eight daily loss out of the last ten trading days.
Higher US yields and a stronger US dollar continue to be the key factor keeping gold on a negative bias. Not even risk appetite in the US helped the yellow metal. The US 10-year yield is moving back to 1.60%, up 1.80% for the day. The DXY is at 92.35, at the strongest since mid-November.
On Wall Street, even the Nasdaq is now in positive territory after a sharp recovery. On a volatile session, the Dow Jones gains 1.42% and the Nasdaq 0.25. Gold prices failed to benefit from the rally in US stocks.
Gold is offering no signs of a correction or a consolidation, even as the RSI and Momentum show extreme oversold readings. The next support might be seen around the $1675 area. On the upside, $1695 and $1715 become short-term resistance levels.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
