- Gold under pressure on rising dollar and sovereign bond yields.
- XAU/USD at a two-week low and with a very short-term negative bias.
- The Federal Reserve minutes are coming.
The Prayed is falling for the third session in a row and continues to lose ground after being rejected above $1,800. The bearish bias further intensified after losing $1780 and is now testing levels below $1770.
The declines on Wednesday are behind a stronger dollar and also a rise in sovereign bond yields. UK inflation data triggered a drop in bond values on both sides of the Atlantic. The US retail sales report gave a mixed view. The focus now turns to what will be the minutes of the last meeting of the Federal Reserve, to be published at 18:00 GMT.
The Dollar Index rises 0.22% and approaches 107.00. While stocks on Wall Street are trading negative with the Dow Jones losing 0.52% and the S&P 500 losing 0.67%, giving the dollar more strength.
The metal yellow bottomed on Wednesday at $1764, where it coincides with the 20-day moving average. It is the first support to consider. Below it will then follow $1755 and $1745.
The very short-term bias is to the downside, although XAUUSD faces a relevant support area up to $1760. A return above $1780 could alleviate the current bearish pressure. To enable a resumption of the rally, a confirmation above $1,800 is required.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
