Gold Price Forecast: XAU/USD tumbles after US data, hits two-day lows under $1,800
- Gold is under pressure as US yields jump after US data.
- US Q3 GDP was revised from 2.9% to 3.2%.
- Wall Street extends losses, US Dollar soars.
Gold prices dropped sharply from nearly $1,820, reaching levels under $1,800 following the release of US economic reports.
Looking for Santa’s rally
Economic data released in the US showed the economy expanded at an annualized rate of 3.2% during the third quarter, above the 2.9% of the previous estimate. Price indicators were also revised higher.
Following the numbers, US yields jumped. The US 10-year yield rose from 3.64% to 3.67% while the US 2-year yield soared from 4.20% to 4.26%. The move in the bond market weighed on XAU/USD that sank. At the same time, equity prices in Wall Street extended losses. As of writing, the Dow Jones is losing 0.93% and the SP& 500 drops by 1.24%.
Gold bottomed at $1,798, the lowest level in two days. It is hovering around $1,800 far from the recent high of $1,824. The correction is taking place after the yellow metal was unable to consolidate above the $1,820 area. A daily close above, should open the doors to more gains.
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.
