Gold tumbles to test $1250

Matías Salord FXStreet

Gold turned sharply to the downside, falling more than $10 from daily highs. The metal came under pressure amid a rally of the US dollar. The value of the ounce was affected as USD/JPY jumped and as US bonds tumbled.

USD/JPY broke to the upside, after moving with limited price action during several days while US bond yields are having the biggest gain of the month so far. The 10-year yield climbed from 2.236% to 2.275%, the highest in almost a week.

U.S. Treasury bond yields edge higher on Tuesday

Gold bottomed at $1250 during the American session, the lowest level since last Friday. Price is testing the $1250 zone. Earlier today it rose to test last week highs. After reaching $1263 turned to the downside and accelerated the decline in New York.

Technical levels

To the downside, support levels are seen at $1250 (daily low), $1245 (May 18 low) and $1239 (May 16 high). On the upside, resistance levels are now located at $1257 (European session low), $1264 (last week high) and $1270.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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