- Gold is extending declines on moody markets going risk-off.
- Interest rate concerns driving the price of bullion as Treasury yields climb.
- Gold spot prices set to challenge eight-month lows if downside resumes.
The XAU/USD is down $20 per ounce for Monday, declining to $1,830.00 on the charts as Gold continues its decline. Gold spot prices are set to close in the red for the sixth consecutive trading day, and the XAU/USD has closed flat or bearish for nine of the last ten daily candles.
Gold remains significantly oversold on the charts as investors flock to safer havens in the face of rising interest rates and US Treasury yields consistently tapping into new highs.
Gold traders will be quick to note that much of the downside for XAU/USD is largely based on market concerns of a global economic slowdown, and if broader market sentiment is able to shrug off the jitters, Gold spot could easily see a rebound.
While the Federal Reserve (Fed) is set to hold interest rates higher for longer, it would take a notable appreciation in inflation expectations moving forward to drive the Fed into a new rate hike cycle, and investors will be hoping that a lack of upside shifts in the Fed's rate expectations, or the "dot plot", will cap further losses for the precious metal.
XAU/USD technical outlook
Gold spot prices are firmly bearish on Monday, down 1% from the day's open near $1,830.00 and the XAU/USD has so far entirely failed to mark in any kind of rebound after last Friday's decline from $1,880.00.
Daily candlesticks sees Gold so bearish that it is firmly breaking technical indicators: the Relative Strength Index is at its most oversold since 2018, with a reading of 20.55, and the Moving Average Convergence-Divergence (MACD) histogram is at its lowest reading since the first quarter of 2023.
Gold spot has declined over 6% from September's peak at $1,947.00, and if bulls fail to stage a successful relief rally from here it will see the XAU/USD heading into red territory for the year, below the year's floor of $1,804.76.
XAU/USD daily chart
XAU/USD technical levels
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.
Recommended content
Editors’ Picks
EUR/USD extends slide below 1.0700 on stronger USD, EU political angst
EUR/USD stays under bearish pressure and trades at its lowest level since early May below 1.0700. Unabated US Dollar demand amid risk aversion and looming EU political uncertainty exert downside pressure on the pair heading into the weekend.
GBP/USD slumps to multi-week lows below 1.2700
GBP/USD extends its decline on Friday and trades at its lowest level in nearly a month below 1.2700. In the absence of high-tier data releases, the US Dollar continues to benefit from souring market mood, forcing the pair to stretch lower in the second half of the day.
Gold clings to recovery gains at around $2,330
Following Thursday's pullback, Gold holds its ground on Friday and trades in positive territory near $2,330. The benchmark 10-year US Treasury bond yield edges lower toward 4.2%, helping XAU/USD push higher ahead of the weekend.
Monero price poised for a downward correction
Monero price has encountered resistance at a critical level. The technical outlook suggests a potential short-term correction as momentum indicators signal a bearish divergence.
Week ahead – RBA, SNB and BoE next to decide, CPI and PMI data also on tap
It will be another central-bank-heavy week with the RBA, SNB and BoE. Retail sales will be the highlight in the United States. Plenty of other data also on the way, including flash PMIs and UK CPI.