- Higher US yields sent metal sharply lower and boosted the DXY.
- Gold tests Tuesday’s lows, bearish pressure mounts.
Gold prices remain depressed, looking at the $1700 level. The yellow metal fell to $1701 hitting the lowest level since June. It then bounced to the upside toward $1710, but it remains under pressure amid higher US yields that boosted the dollar.
The DXY bounced from 90.60 and climbed above 91.00. The greenback also jumped versus emerging market currencies. Equity indices in Wall Street failed to hold to gains and now are mostly lower. The Nasdaq drops 12.40%, and the Dow Jones is up by just 0.09%. The VIX rose to the highest in three days.
Silver and gold tumbled over the last hours. XAU/USD is testing levels under 26.00, while gold pressures toward $1700. The key drivers again are US yields. The 10-year is approaching 1.50%, up more than 7% on Wednesday. Economic data from the US was mostly ignored.
A break under $1700 could increase the bearish bias. The next medium-term support emerges ar5oudn $1675. On the upside, a recovery above $1720 would alleviate the negative.
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.
Latest Forex News
Editors’ Picks
EUR/USD jumps above 1.20 on upbeat market mood
EUR/USD has jumped above 1.20, hitting the highest since March amid a risk-on mood and falling US yields. An uptick in EU vaccination rates is also boosting sentiment.
GBP/USD advances toward 1.39 as US yields drop
GBP/USD is on the rise as falling US yields drag the euro down. Britain's successful vaccination campaign and an optimistic market mood also support cable.
XAU/USD hits fresh two-month highs near $1790 as US dollar tumbles
Gold is breaking higher towards $1800, as USD sell-off resumes. The US Treasury yields remain depressed amid dovish Fed bets. XAU/USD’s technical indicators point to more upside.
Ripple recovery in full force as key indicator flashes buy signals
XRP price is poised for a significant rebound after the TD Sequential indicator presented two buy signals. The digital asset faces only one crucial resistance level on its way up. The number of large holders continues to steadily increase.
S&P 500 Week Ahead: Banks beat the street, COIN booms as funds flow to ETFs
Equity markets continue to remain bolstered from all sides as the macro environment produces strong numbers, earnings continue to smash estimates and inflation concerns take a back seat. Earnings season switches from bank stocks to reopening plays.