The oro (XAU / USD) it has been extending its slide as high bond yields make the precious metal, which offers no yield, less attractive.
According to the charts, gold is trading at the lowest levels since the end of June 2020, the lowest level in eight months.
The RSI on the daily chart is still above the 30 level, therefore it is out of oversold conditions and allows an additional drop.
The XAU / USD has recently seen a pattern of “death crossing“, when the 50-day SMA crossed the 200-day SMA to the downside, a bearish development.
XAU / USDD daily chart
It is essential to note that the gold is on the defensive despite increases in other metals such as copper and iron. Inflation concerns have yet to have a positive impact on the price of precious metals. The S&P 500 is also falling.
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