- High volatility in gold trading on Friday.
- Bounce from three-week lows runs out of steam at $1845 area.
- Rising yields and dollar strength complicate the outlook for the metal.
The Prayed it is falling on Friday although it managed to cut losses after the US inflation data. The characteristic is being the high volatility that could continue in the rest of the day.
XAU/USD fell to $1,824 on the release of US retail inflation data. The CPI rose 1% in May, higher than expected, taking the annual rate to 8.6%, the highest level since 1981. After the momentum, came a strong bounce above $20. After reaching the area of $1845 the weakness was present again.
The context of rise in treasury bond yields and the appreciation of the dollar does not play in favor of metals. The 10-year US bond yield yields 3.11%, the highest since May 9. For its part, on Wall Street, stocks are falling sharply for the second day in a row. High yields and risk aversion are driving the dollar. DXY climbs 0.75% after breaking above 104.00.
The weakness in gold could extend, especially if the current context remains and if the price remains below $1850. A return below $1830 could increase bearish pressures. The next strong support is seen at $1815.
|Last Price Today||1831.4|
|Today’s Daily Change||-16.50|
|Today’s Daily Change %||-0.89|
|Today’s Daily Opening||1847.9|
|20 Daily SMA||1844.41|
|50 Daily SMA||1885.5|
|100 Daily SMA||1889.83|
|200 Daily SMA||1842.02|
|Previous Daily High||1855.38|
|Previous Daily Minimum||1840.09|
|Previous Maximum Weekly||1874.16|
|Previous Weekly Minimum||1828.55|
|Monthly Prior Maximum||1909.83|
|Previous Monthly Minimum||1786.94|
|Daily Fibonacci 38.2%||1845.93|
|Daily Fibonacci 61.8%||1849.54|
|Daily Pivot Point S1||1840.2|
|Daily Pivot Point S2||1832.5|
|Daily Pivot Point S3||1824.91|
|Daily Pivot Point R1||1855.49|
|Daily Pivot Point R2||1863.08|
|Daily Pivot Point R3||1870.78|
Source: Fx Street