- Gold is under pressure as stocks plunge and bond yields rise.
- Yellow metal tries to recover ground, the key is at $1655.
- The dollar jumps to 20-year highs, putting further pressure on gold.
The Prayed could not hold above $1655 and broke below falling to $1641, the new low since mid-2020. From the bottom it bounced back and is trading around $1650, under pressure.
The combination of a strong dollar and rising Treasury bond yields, in a context of pessimism in the markets, is having a negative impact on gold. Equity markets are crashing, but despite this, sovereign bonds are crashing too.
The The only safe haven on the horizon is the dollar. The DXY rose above 112.00 reaching 20-year highs. The 10-year Treasury bond yields 3.75%, after having reached above 3.80% hours ago.
The plunge in bonds weighs on gold which falls 1.30%, while silver slumps 2.65%. Wall Street futures lose more than 1% and in Europe the main markets fall more than 2%.
Gold, if it remains below $1655, will continue to head lower. Supports are seen at $1,640, followed by $1,625 and $1,610. In the opposite direction, a return above $1,660 would alleviate bearish pressures, while a more sustainable rebound could be expected after a firming above $1,680.
|Last Price Today||1649.51|
|Today’s Daily Change||-21.75|
|Today’s Daily Change %||-1.30|
|Today’s Daily Opening||1671.26|
|20 Daily SMA||1701.37|
|50 Daily SMA||1732.87|
|100 Daily SMA||1777.47|
|200 Daily SMA||1829.16|
|Previous Daily High||1684.95|
|Previous Daily Minimum||1655.69|
|Previous Maximum Weekly||1735.17|
|Previous Weekly Minimum||1654.17|
|Monthly Prior Maximum||1807.93|
|Previous Monthly Minimum||1709.68|
|Daily Fibonacci 38.2%||1666.87|
|Daily Fibonacci 61.8%||1673.77|
|Daily Pivot Point S1||1656.32|
|Daily Pivot Point S2||1641.37|
|Daily Pivot Point S3||1627.06|
|Daily Pivot Point R1||1685.58|
|Daily Pivot Point R2||1699.89|
|Daily Pivot Point R3||1714.84|
Source: Fx Street
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