Gold is suffering a meltdown – alongside stocks – as US Treasury yields are surging on elevated growth and inflation forecasts. The precious metal has no yield and investors seem more attracted to Bitcoin these days. Where will it stop?
In the meantime, here is how XAU/USD is positioned on the charts.
The Technical Confluences Indicator is showing that gold has some support at $1,725, which is the convergence of the Pivot Point one-week Support 2 and the previous 15min-Low.
A more considerable cushion is at $1,712, which is where the PP one-month Support 2 hits the price.
Even lower, bears may target $1,687, which is where traders find the PP one-week S3.