- Gold with negative bias in the very short term, tries to hold above $1830.
- The dollar stabilizes and rises modestly for the second day.
- Treasury bond yields slightly higher.
The Prayed is trading in the $1830 area, having dropped to $1828, the lowest level since May 19. The weakness in the path of the yellow metal intensified after the break below $1840 on Tuesday.
The drop brought the price of XAU/USD below the 20 and 200 day moving average. A confirmation below $1830 would pave the way for a bearish extension, with an eye on the next support at $1815.
If it bounces up to $1,850, gold may encounter several resistances. A firm return above that level could remove the very short-term negative bias. Further up at $1870 is the next major resistance.
The casualties occur in the face of a climate of caution in the equity markets. Wall Street futures operate mixed and in Europe the main markets operate without major changes. Treasury bond yields rose modestly on Wednesday, with the 10-year bond rate at 2.85% and the 30-year bond rate at 3.06%.
On Wednesday, the final reading of the S&P Global Manufacturing PMI will be published in the US, in addition to the May manufacturing IMS and the jobs announcements report. Later the Bank of Canada will announce its monetary policy decision and the Fed will publish the Beige Book on the state of the economy. Also speaking in public are John Williams of the New York Fed and James Bullard of the St. Louis Fed.
Technical levels
Source: Fx Street
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