Gold unable to recover as USD remains strong supported by yields

Gold remains vulnerable, under $1,300/oz.
Higher US yields continue to limit any recovery and remain supportive of the US Dollar.

Matías Salord FXStreet

Gold printed a fresh 2018 low earlier today at $1,285.10/oz and then bounced modestly to the upside. The recovery lost strength above $1,290 signaling that downside pressure still persists.

Higher US yields continue to affect gold prices. The 10-year reached 3.12%, a new multi-year high. The daily trends in yields still point higher, keeping any recovery limited.

Gold continues to move near the lows despite the rally in equity prices. During the last hour the DOW JONES rose more than a hundred pips in a few minutes, erasing daily losses while at the same time, XAU/USD remained muted.

Technical levels

On the downside, the area around $1,285/88 is the immediate support, a break lower could clear the way for a test of $1,280 and below the next support is seen at $1,275. On the upside, resistance levels might be seen at $1,295 followed by $1,305 and $1,310.

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.

AUD/USD climbs toward 0.7000 after strong China data dump

AUD/USD attracts follow-through buyers for the second straight day on Monday, extending last week's recovery toward 0.7000 in Monday's Asian trading. Strong Chniese Q3 GDP and activity data for September strengthen the pair's advance, following RBA Assistant Governor Chris Kent's hawkish remarks.

USD/JPY struggles near 158.00 amid hawkish BoJ, subdued USD

USD/JPY remains defensive near 158.00 in the Asian session on Monday, as the US Dollar remains depressed near a two-week low amid the recent decline in US bond yields. Furthermore, looming intervention risks underpin the Japanese Yen and weigh on the pair amid BoJ Governor Kazuo Ueda's hawkish remarks. However, Fed rate-hike bets and geopolitical uncertainties could limit USD losses and the major.

Gold drops to daily lows below $4,150

Gold builds on Friday’s retracement and slips back below the $4,150 mark per troy ounce on Monday. The better tone in the US Dollar and a decent bounce in US Treasury yields across the curve keep the yellow metal under pressure for now.

Crypto Today: Bitcoin, Ethereum, XRP extend recovery despite ETFs outflows

Bitcoin edges higher above $82,000, building strong structural support despite roughly $229 million in ETF outflows last week. Ethereum recovers above $2,400 as bulls strive to regain trend control, backed by a subtle recovery in momentum indicators.

Higher than expected inflation shakes markets: What to prepare for?

US CPI report came in stronger than expected, lifting the probability of a December rate hike higher once again. Even though Fed Chair Warsh reinforced expectations of a hold for the October’s meeting, markets now face a two-step event: a likely pause on October 28, followed by an interest rate hike on December 9.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.