Gold slumps to fresh daily lows near $1470 on broad USD strength


  • US Dollar Index rises toward 97.50 on Wednesday.
  • Wall Street looks to open the day slightly higher.
  • 10-year US Treasury bond yield pares early losses.

The XAU/USD pair spent the first two days of the week fluctuating in a tight range below the $1480 mark but came under modest selling pressure on Wednesday to drop to $1470. As of writing, the pair was down 0.25% on the day at $1472.35.

USD continues to find demand

The broad USD strength seems to be forcing the pair to remain under bearish pressure. After closing the day above the 97 mark on Monday, the US Dollar Index posted small gains on Tuesday and continued to push higher to touch its highest level in a week at 97.48.

Although there were no significant fundamental drivers that could directly impact the USD's performance, the selling pressure on the major European currencies, namely the GBP and the EUR, seems to be ramping up the demand for the greenback.

In the meantime, the 10-year US Treasury bond yield pared early losses and turned positive on the day to point out to a recovering market sentiment, which makes it difficult for the safe-haven gold to stay resilient against the USD.

Later in the session, Chicago Fed President Charles Evans will be delivering a speech. Additionally, investors will be paying close attention to Wall Street's performance. Ahead of the opening bell, the S&P 500 futures are up 0.12% on the day to suggest that major equity indexes in the US could open in the green.

Technical levels to watch for

XAU/USD

Overview
Today last price 1473.8
Today Daily Change -2.17
Today Daily Change % -0.15
Today daily open 1475.97
 
Trends
Daily SMA20 1467.21
Daily SMA50 1478.51
Daily SMA100 1490.7
Daily SMA200 1411.36
 
Levels
Previous Daily High 1480.58
Previous Daily Low 1474.29
Previous Weekly High 1486.58
Previous Weekly Low 1458.82
Previous Monthly High 1515.38
Previous Monthly Low 1445.8
Daily Fibonacci 38.2% 1476.69
Daily Fibonacci 61.8% 1478.17
Daily Pivot Point S1 1473.31
Daily Pivot Point S2 1470.66
Daily Pivot Point S3 1467.03
Daily Pivot Point R1 1479.6
Daily Pivot Point R2 1483.23
Daily Pivot Point R3 1485.88

 

 

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.

Feed news

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!
   

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD rises above 1.2150 amid upbeat German data

EUR/USD has been rising above 1.2150 after the German ZEW Economic Sentiment gauge beat expectations with 84.4 points. Earlier, concerns about inflation boosted the dollar. 

EUR/USD News

GBP/USD trades off the highs amid risk-off mood, ahead of Bailey

GBP/USD is trading above 1.41 but off the fresh highs. The safe-haven dollar is gaining ground amid fears of inflation. UK PM Johnson's announcement of additional easing of restrictions boosted the pound on Monday. BOE Governor Andrew Bailey is set to speak later on.

GBP/USD News

XAU/USD remains confined in a range below $1,840 level

Gold is in the hands of the bulls but a correction is on the cards.  The monthly outlook is critical which makes the next few weeks testing for the gold market. 

Gold News

SHIB price skyrockets as Binance Lists Dogecoin rival Shiba Inu

“DOGE killer” Shiba Inu coin has reached a new all-time high as it rides on bullish momentum from recent crypto exchange listings. SHIB price has climbed by over 2,260% in the past week, as many investors missed out on the Dogecoin pump.

More Crypto News

Nasdaq (NDX QQQ) Technical view, key chart levels, Nasdaq tests trendline support

The Nasdaq is trading nicely from resistance to support. Friday's rally stalled at the convergence of the 9 and 21-day resistance. Monday sees the resistance work well and so the Nasdaq sells off and currently finds support at the lower trendline seen in the chart below.

Read more

Forex MAJORS

Cryptocurrencies

Signatures