• Gold prices trim daily losses as the dollar soars on risk aversion.
  • US yields collapse amid fears of a recession.
  • Silver also rebounds, down “just” 2.60%.

Metals rebounded during the American session, amid a collapse in US yields. The rally in Treasuries boosted gold that dragged silver to the upside. XAU/USD is hovering around $1,800/oz, far from the daily low.

Yields tumble helping gold that helps silver

US yields spiked to the downside. The US 10-year dropped to as low as 2.79%, the lowest since late May (earlier on Friday, it traded above 3.00%), while the 30-year tumbled to 3.02%.

Recession fears are softening Fed’s tightening expectations. The bond market on Friday is showing more concerns than the equity market. In Wall Street, the Dow Jones is falling by 0.56% and the Nasdaq by 0.49%.

The sharp slide in yields pushed gold back above $1,800, alleviating the bearish pressure. XAU/USD bottomed at $1,784, the lowest since late January. It is still down for the day and about to post the lowest weekly close in months. The area around the 2022 low at $1,780 is a critical support.  

Silver also trimmed losses dragged to the upside by gold. XAG/USD bottomed at $19.38, level not seen since July 2020 and it is trading at $19.75, down 2.60%. Price is under the 200-week Simple Moving average for the first time since May 2020.

Technical levels

XAU/USD

Overview
Today last price 1800.63
Today Daily Change -6.67
Today Daily Change % -0.37
Today daily open 1807.3
 
Trends
Daily SMA20 1834.99
Daily SMA50 1849.89
Daily SMA100 1891.72
Daily SMA200 1845.12
 
Levels
Previous Daily High 1825.19
Previous Daily Low 1802.79
Previous Weekly High 1847.95
Previous Weekly Low 1816.99
Previous Monthly High 1879.26
Previous Monthly Low 1802.79
Daily Fibonacci 38.2% 1811.35
Daily Fibonacci 61.8% 1816.63
Daily Pivot Point S1 1798.33
Daily Pivot Point S2 1789.36
Daily Pivot Point S3 1775.93
Daily Pivot Point R1 1820.73
Daily Pivot Point R2 1834.16
Daily Pivot Point R3 1843.13

 

 

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