- The gold price rally continues and tests the $1,900 level.
- The yellow metal rises 5% in three days of trading.
- US yields hit their lowest level in months amid risk aversion.
The price of gold (XAU/USD) rises more than 2% on Monday, extending gains from last Friday boosted by a rally in US Treasuries as investors fly to the safe haven and cut expectations of interest rate hikes by the Federal Reserve.
He XAU/USD has reached $1,900 for the first time since February 3. Afterwards, it has fallen slightly back to $1,895. The recovery of gold has been spectacular, with a raise of more than $90 since Thursday. Above $1,900, the next resistance zone is around $1,920.
The main driver of the recovery of the yellow metal is the sharp decline in US yields. The 10-year US bond has fallen from more than 4.0% to 3.41%, approaching yearly lows. On the other hand, the 2-year bond exceeded 5.0% on Wednesday (highest since 2008) and a few moments ago it reached the lowest intraday level since October, at 4.0%.
The bankruptcy of Silicon Valley Bank triggered concerns about the banking sector, weighing on Fed rate hike expectations. Investors are watching the impact of the crisis, which is offsetting incoming economic data. On Tuesday the CPI Consumer Price Index for February is released in the US, which was supposed to be critical for monetary expectations. Following the SVB plunge, markets are pricing in a dovish Fed.
gold technical levels
|Last price today||1899.46|
|daily change today||29.54|
|today’s daily variation||1.58|
|today’s daily opening||1869.92|
|previous daily high||1870.09|
|previous daily low||1827.77|
|Previous Weekly High||1870.09|
|previous weekly low||1809.46|
|Previous Monthly High||1959.8|
|Previous monthly minimum||1804.76|
|Fibonacci daily 38.2||1853.92|
|Fibonacci 61.8% daily||1843.94|
|Daily Pivot Point S1||1841.76|
|Daily Pivot Point S2||1813.61|
|Daily Pivot Point S3||1799.44|
|Daily Pivot Point R1||1884.08|
|Daily Pivot Point R2||1898.25|
|Daily Pivot Point R3||1926.4|
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.