Gold Price News and Forecast: XAU/USD
Gold Price Analysis: XAU/USD drops further to $1770 ahead of critical support
Gold dropped further during the American session and bottomed at $1769, the lowest level since last Friday. The metal erased weekly gains and is back below $1780 as US yields keep rising.
The US 10-year yield stands at 1.479%, a new one-year high. At the same time, stocks in Wall Street turned negative. The Dow Jones is falling by 0.35% and the Nasdaq 1.20%.
The decline in gold has been limited so far on the back of a mixed US dollar. The greenback is down versus main European currencies and up against the yen. Better-than-expected US economic data did not help the greenback.
Why tech is giving me jeepers – watch out, gold
Powell testimony is over, with markets rejoicing the promise of still accomodative Fed. Value keeps surging over growth, and regardless of yesterday‘s great performance, tech has a vulnerable feel to it –" semiconductors lead higher, fine, but communications didn‘t confirm, and the healthcare-biotech dynamic isn‘t painting an outperformance picture either. Real estate isn‘t taking as strong a cue while consumer discretionaries recovery could also be stronger. Thus far though, no need to think about taking losses to optimize your gains elsewhere.
Just as I wrote yesterday:
(…) the financials benefiting from the greater spread, won‘t save the day, as the key chart to watch now is technology and also healthcare. … The sectoral outlook remains mixed, even as value continues greatly outperforming growth this month. … Long-term Treasuries are starting to hold greater sway over the stock market fate now, too. The dollar‘s woes thus far continue playing out largely in the background.
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FXStreet Team
FXStreet
