Gold Price News and Forecast: XAU/USD could extend its slide unless it manages to reclaim $1,700

FXStreet Team FXStreet

Has gold “ever given” to you?

Neither the Suez Canal blockade nor the SLR exemption’s expiration should significantly affect gold, whose price is likely to be soon shaped by other factors.

Do you think you’ve had a bad day? If yes, then imagine the helmsman of the Ever Given who somehow managed to get his giant container ship stuck in the Suez Canal, disrupting global trade and causing economic damage worth millions of dollars each hour. Sure, the blockade won’t sink the global economy (pun intended), but it won’t help it either. After all, the Suez Canal is the gateway between Europe and Asia, through which around 12-13% of world trade flows, as does 30% of the world's daily shipping container freight. So, every day of obstruction disrupted the movement of goods worth about $9 billion, having a significant impact on global trade.

Gold Price Analysis: XAU/USD now sees key resistance at the former $1,700 support

Gold is losing more than 1% for the second straight day.

Key quotes

“The benchmark 10-year US T-bond yield, which posted gains in the previous three trading days, touched its highest level in more than a year at 1.774% on Tuesday and was last seen rising 2.2% on the day at 1.753%. 1.75% is widely seen as a key level for the 10-year US T-bond yield and a daily close above this point could allow the bullish momentum to remain intact and make it difficult for XAU/USD to erase its losses.”

“In case XAU/USD manages to stage a recovery, the initial resistance is located at $1,700 (psychological level) ahead of $1,720 (20-day SMA). As long as $1,700 resistance continues to hold, a bullish shift is unlikely to occur in the near-term.”

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