Gold Price Forecast: XAU/USD corrects further from three-week highs, hit daily lows under $1810
- Gold retreats to $1810 from three-week highs.
- DXY back into negative territory, US yields modestly lower.
Gold prices pulled back further during the American session even as the DXY dropped back into negative territory. The ounce fell to $1809.90 hitting fresh daily low. It is hovering around $1810, down almost $10 for the day.
Also silver is down on Monday, on a quiet session for financial markets. The decline in US yields is not helping gold so far; not even risk appetite. The US 10-year yield fell to 1.28%, a five-day low. The Dow Jones is back to green, up 0.11% while the Nasdaq climbs 0.85%.
On Friday, gold soared after Powell’s comments. The rally continued during Monday’s Asian session when XAU/USD peaked at $1823 before turning to the downside. The negative tone dominates for the session. A recovery back above $1815 could strengthen the metal. The next key level on the upside is seen around July and August highs around $1835.
On a wider perspective, gold still offers some bullish signs but is losing momentum. If the slide continues, the next support might be seen at $1806 and then comes $1795. The key support below is $1780.
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.
