Gold: Range breakdown confirmed as US yields hit three-month highs


  • 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. 

Technical levels

XAU/USD

Overview
Today last price 1468.18
Today Daily Change -22.97
Today Daily Change % -1.54
Today daily open 1491.15
 
Trends
Daily SMA20 1494.47
Daily SMA50 1501.96
Daily SMA100 1475.46
Daily SMA200 1389.03
 
Levels
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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD advances 1.10 amid upbeat trade headlines, after mixed US retail sales

EUR/USD is trading closer to 1.1050, up on the day. US Commerce Secretary Ross has expressed optimism about reaching a deal with China. The Retail Sales Control Group met expectations with 0.3%.

EUR/USD News

GBP/USD soars past 1.2900 as Farage gives additional boost to Conservatives

GBP/USD has leaped above 1.29, the highest since early November, as the Brexit Party has failed to field candidates in 43 additional seats, facilitating a victory for PM Boris Johnson.

GBP/USD News

USD/JPY clings to gains near session tops, around 108.70 post-US data

The USD/JPY pair maintained its strong bid tone near session tops and had a rather muted reaction to the mixed US economic data.

USD/JPY News

Gold looks to close week with small gains below $1,470

The precious metal struggled to find demand on Friday as the upbeat market mood on renewed hopes of the United States and China reaching a trade deal to avoid a tariff hike in December caused investors to move away from safe havens.

Gold News

Crypto Today: Playing with the thin red line

BTC/USD has fallen below $8,500 during the Asian trading session. A close below this support level would put $7,500 on the trading table. ETH/USD is moving below the 50-period exponential moving average.

Read more

Forex MAJORS

Cryptocurrencies

Signatures