- Gold treads water below $1,770.
- Bullion remains weak, weighed by higher US bond yields.
- XAU/USD: Dangerously close to $1,725 support area.
Gold futures remain on the defensive on Monday, unable to regain the $1,770 level after a $30 sell-off seen on Monday. The XAU/USD bounced at $1,760 lows earlier today although the ensuing recovery attempt has lacked follow-through, leaving the pair practically flat on the day.
Gold, on the defensive amid higher US T-Bond yields
Bullion has opened the week on a soft note, in spite of the negative market mood seen during the Asian and the European sessions. Weak Chinese data and fresh highs on oil prices, which have revived concerns about inflationary pressures, have hammered risk appetite, triggering losses in equity markets.
The increase on US Treasury bonds, however, fuelled by increasing expectations that Fed tapering is around the corner, has made the US dollar a more attractive refuge for inflation than gold. The US 10-year yield has ticked up to 1.57% from 1.55% on Friday, while shorter-term notes, like the 5-year yield, surging to 20-month highs at 1.19% as investors start speculating about the possibility of higher interest rates for 2022.
XAU/USD remains close to $1,745 and $1,725 support levels
From a technical perspective, XAU/USD remains steady above $1.760 area, consolidating after Friday’s 1.8% decline. If that level is broken, the focus might shift towards t $1,745 (October 6 low) and then a key support area at $1,725 (September 29, 30 low).
On the upside, immediate resistance lies at intra-day highs $1,770, which should be breached to aim toward $1,807 (Sept. 15 high) ahead of $1.830, July and September’s peak.
Technical levels to watch
|Today last price||1766.83|
|Today Daily Change||-0.37|
|Today Daily Change %||-0.02|
|Today daily open||1767.2|
|Previous Daily High||1796.5|
|Previous Daily Low||1764.9|
|Previous Weekly High||1800.62|
|Previous Weekly Low||1750.24|
|Previous Monthly High||1834.02|
|Previous Monthly Low||1721.71|
|Daily Fibonacci 38.2%||1776.97|
|Daily Fibonacci 61.8%||1784.43|
|Daily Pivot Point S1||1755.9|
|Daily Pivot Point S2||1744.6|
|Daily Pivot Point S3||1724.3|
|Daily Pivot Point R1||1787.5|
|Daily Pivot Point R2||1807.8|
|Daily Pivot Point R3||1819.1|
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