• Gold Prices recently slid below the $1900 level for the first time in nearly one month and are now testing support. 
  • A break below $1890 support would open the door to selling pressure towards the 200DMA at $1830. 
  • Ahead, gold traders will be watching US data including GDP and Core PCE results, as well as geopolitical risk. 

At $1,897, Gold Price is down some 1.8% and has travelled between $1,891.56 the low and $1,934.54 the high. Risk sentiment has fallen at the state of the week. Government bond yields have subsequently slumped as concern has mounted that the COVID-19 related shutdowns in China will compound supply chain restrictions, undermining growth in the second-largest economy in the world with contagion risks for the rest of the world. 

The US 10-year yield sank to a low of 2.760% intraday falling from a high of 2.895%. The US dollar, nevertheless, has rallied by some 0.6% from a low of 101.040 and to 101.856 as per the DXY index. This has left the price of gold on the back foot despite the risk-off mood. 

Traders are citing concerns about widening lockdowns in China as the major driver of the recent downturn energy and industrial metal prices, and this is resulting in a pairing back in inflation expectations, weighing on precious metals. Meanwhile, risk-off flows and weakness in the yuan are boosting the buck, raising the cost of USD-denominated gold for foreign buyers. 

Some gold bulls might be tempted to reload longs at current levels, however. Firstly, support in the $1890s has held up well in recent weeks and, with US yields pulling back off highs a touch amid increased safe-haven demand, this support may well hold. Indeed, the latest commentary on the Russo-Ukraine front suggests that peace talks remain at an impasse and that the stagflationary risks presented by the war remain a key risk to the outlook. 

The Upcoming Week

Looking ahead, gold traders will also be focused on US data this week, the highlights including the first estimate of Q1 2022 GDP and March Core PCE inflation.

The Real Gross Domestic Product ikely slowed sharply in Q1 following a significant increase to 6.9% AR in Q4 from 2.3% in Q3. ''As was the case last quarter, inventories will play a large role though they will be a drag instead. That said, domestic final sales likely continued to strengthen on the back of firming consumer spending. The inflation parts of the report will likely show acceleration,'' analysts at TD Securities explained. 

That should keep focus on the fact that the Fed and other major central banks look very much on autopilot towards higher interest rates, even if there are no Fed speakers scheduled to appear this week to remind us of this. For reference, the Fed is in blackout ahead of next week's policy meeting.

The price is moving into a consolidation at this juncture. However, a break below $1890 support would open the door to a push lower towards the 200-Day Moving Average at $1830. 


Today last price 1895.19
Today Daily Change -36.29
Today Daily Change % -1.88
Today daily open 1931.48
Daily SMA20 1944.97
Daily SMA50 1935.64
Daily SMA100 1871.43
Daily SMA200 1831.53
Previous Daily High 1955.71
Previous Daily Low 1926.71
Previous Weekly High 1998.43
Previous Weekly Low 1926.71
Previous Monthly High 2070.54
Previous Monthly Low 1890.21
Daily Fibonacci 38.2% 1937.79
Daily Fibonacci 61.8% 1944.63
Daily Pivot Point S1 1920.22
Daily Pivot Point S2 1908.97
Daily Pivot Point S3 1891.22
Daily Pivot Point R1 1949.22
Daily Pivot Point R2 1966.97
Daily Pivot Point R3 1978.22




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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD stays under bearish pressure, closes in on 1.0500

EUR/USD stays under bearish pressure, closes in on 1.0500

EUR/USD has extended its daily slide in the American session and declined below 1.0530. The one-year inflation expectations of the Conference Board's Consumer Confidence Survey climbed to 8% in June from 7.5% in May, providing a boost to the greenback. 


GBP/USD continues to push lower toward 1.2200

GBP/USD continues to push lower toward 1.2200

GBP/USD has turned south in the American session and slid toward 1.2200. The US Dollar Index extended its daily rally toward 104.50 after the latest US data on Tuesday, forcing the pair to stay under bearish pressure. 


Gold continues to fluctuate in tight range above $1,820

Gold continues to fluctuate in tight range above $1,820

Gold is having a difficult time making a decisive move in either direction on Tuesday and fluctuating in a narrow range above $1,820. As investors assess the latest data releases from the US, the 10-year US T-bond yield clings to modest gains above 3.2%.

Gold News

Former Ripple CTO is dumping millions of XRP, traders beware

Former Ripple CTO is dumping millions of XRP, traders beware

XRP price shows promise that it is ready to trigger a massive run-up as the first half of the year comes to an end. There are three reasons why investors should be bullish on Ripple.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!