Gold Price Forecast: XAU/USD’s fate hinges on Treasury yields, Powell’s speech
Gold (XAU/USD) reached fresh nine-month lows at $1702 amid a renewed uptick in the US Treasury yields, as the bond market turmoil resumed on Wednesday. Gold managed to recover some ground and finished the day at $1714, still losing significantly on a daily basis. The latest remarks from Chicago Fed President Charles Evans, citing that the recent rise in yields signaled optimism on the economic outlook, powered the latest leg up in the yields.
Gold Price Analysis: Bears looking to test bull's commitments at $1,698
Technically, the gold price is no longer showing signs of an immediate advance back to test $1,760. Instead, gold failed to extend beyond $1,740 and printed a fresh low to $1,702 as the US dollar and yields came up for air.
However, if there is no break of $1,702, which would otherwise open prospects of $1,685 as a measured Fibonacci retracement target of the range between $1,760 and Wednesday’s low of $1,702, the longer-term time frames should be noted.
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