- Gold price has tumbled to near $1,763.00 as the risk-on profile has faded.
- Geopolitical tensions between North Korea and the US have improved safe haven’s appeal.
- Fed Daly’s hawkish commentary has supported the US Treasury yields.
Gold price (XAUUSD) has witnessed a steep fall after surrendering the critical support of $1,770.00 in the Asian session. The precious metal has tumbled to near $1,763.00 as investors are turning risk-averse after North Korea warns the US that it will face ruthless military activity against its joint drills in its region.
North Korea's foreign minister, Choe Son Hui, slammed a recent trilateral summit between the United States, South Korea, and Japan, during which the leaders criticized Pyongyang's weapons tests and pledged greater security cooperation, as reported by Reuters. This has triggered the risk of geopolitical tensions, which has improved the appeal for safe-haven assets.
The entire recovery witnessed in S&P500 futures in Asia has faded now as investors’ risk appetite has trimmed. Meanwhile, the 10-year US Treasury yields have rebounded to 3.72% as San Francisco Fed President Mary Daly hiked its interest rate guidance. Fed policymaker has considered a range of 4.75% - 5.25% as reasonable for the policy rate end-point. She further added that the central bank wants to see a slowdown in the economy to cool down the red-hot inflation.
Gold technical analysis
Gold price has delivered a downside break of a Rising Wedge chart pattern that indicates exhaustion in the upside momentum. The 20-and 50-period Exponential Moving Averages (EMAs) are on the verge of delivering a bearish crossover of around $1,772.90. Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which indicates more downside in the asset ahead.
Gold hourly chart
|Today last price||1763.28|
|Today Daily Change||-11.04|
|Today Daily Change %||-0.62|
|Today daily open||1774.32|
|Previous Daily High||1785.09|
|Previous Daily Low||1770.41|
|Previous Weekly High||1768.17|
|Previous Weekly Low||1664.76|
|Previous Monthly High||1729.58|
|Previous Monthly Low||1617.35|
|Daily Fibonacci 38.2%||1776.02|
|Daily Fibonacci 61.8%||1779.48|
|Daily Pivot Point S1||1768.12|
|Daily Pivot Point S2||1761.93|
|Daily Pivot Point S3||1753.44|
|Daily Pivot Point R1||1782.8|
|Daily Pivot Point R2||1791.29|
|Daily Pivot Point R3||1797.48|
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