- Gold has dived out of its recent trading range of $1,520-$1,475.
- US 10-year yield has hit the highest level in over three months, weakening demand for gold.
Gold is looking south, having witnessed a range breakdown amid the spike in the US treasury yields.
The yellow metal is currently trading at $1,468 per Oz, representing a 1.48% drop on the day. Prices hit a low of $1,460 earlier today. That was the lowest level since Oct. 1.
With the drop to multi-week lows, gold has convincingly dived out of a five-week trading range of $1,520-$1,475.
The breakdown could be associated with the rise in the US Treasury yields. Notably, the 10-year yield has risen from 1.80% to 1.97% –the highest level since Aug. 1 – making the zero-yielding gold looks unattractive.
The rise in yields is also boding well for the Dollar Index, which measures the value of the greenback against major currencies. The index is currently trading at 98.13, representing a 0.20% gain on the day. The American Dollar is gold's biggest nemesis.
Looking forward, the US-China trade optimism and the uptick in the stocks and yields will likely keep gold on the defensive.
A deeper drop toward $1,450 could be seen, unless China's trade data prints well below estimates, forcing investors to boost their exposure to safe-haven assets.
|Today last price||1468.18|
|Today Daily Change||-22.97|
|Today Daily Change %||-1.54|
|Today daily open||1491.15|
|Previous Daily High||1494.04|
|Previous Daily Low||1482.7|
|Previous Weekly High||1515.38|
|Previous Weekly Low||1481.1|
|Previous Monthly High||1519.04|
|Previous Monthly Low||1455.5|
|Daily Fibonacci 38.2%||1489.71|
|Daily Fibonacci 61.8%||1487.03|
|Daily Pivot Point S1||1484.55|
|Daily Pivot Point S2||1477.95|
|Daily Pivot Point S3||1473.21|
|Daily Pivot Point R1||1495.9|
|Daily Pivot Point R2||1500.64|
|Daily Pivot Point R3||1507.24|
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.