Gold Price Analysis: XAU/USD hits over one-month low of $1,817
- Gold drops 1% to hit the lowest since early December.
- The US dollar extends last week's bounce, pushing gold lower.
- The greenback gains ground on rising US yields.
Gold is on the offer, with the dollar charting an oversold bounce alongside an uptick in Treasury yields.
The safe-haven yellow metal is trading at $1,829 per ounce at press time, representing a 1% loss for the day. Prices fell to $1,817 a few minutes ago to hit the lowest level since Dec.2.
Gold's biggest nemesis, the dollar index, which tracks the greenback's value against majors, jumped to more than two-week highs near 80.40 early today, extending the rebound from the multi-year low of 89.21 reached last Wednesday.
The greenback looks to be tracking the US Treasury yields. The 10-year yield jumped more than 20 basis points to 1.12% lat week. Meanwhile, the yield curve, as represented by the spread between the 10- and two-year yields, steepened to the highest level since 2017.
Besides, a rise in borrowing costs is considered bearish for gold, a zero-yielding inflation hedge. A continued rise in yields could have a bearing on equity markets, leading to a more substantial bounce in the US dollar. However, haven demand may restrict gold's losses.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
