Gold Price Forecast: XAU/USD Remains Under Pressure and Hits One-Month Lows Below $1700

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  • Gold remains under pressure on rising Treasury yields.
  • XAU/USD pressures the $1700 zone and looks closely at the 2022 floor at $1680.

The XAU/USD is falling for the third day in a row and posted new one-month lows at $1699. The $1700 zone is being tested and if broken below the next support is seen at $1690 and then the 2022 low appears, hit on July 21 at $1680.

Treasury bond yields remain near recent highs. The 10-year tranche is at 3.19%, and the 2-year tranche at 3.48%after having reached levels not seen since 2007. The rise in yields continues to be key, therefore, if the expectation of increases in interest rates continues, gold may continue to be under pressure.

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On Thursday, the weekly report of requests for unemployment benefits, the Manufacturing ISM, the final reading of the S&P Global and Raphael Bostic of the Federal Reserve will be published in the US. On Friday it will be the turn of the official employment report with non-farm payrolls, which are expected to have increased by 300,000.

Bad economic data may turn out to be positive for gold, as Treasury yields would be expected to decline. Friday’s figures for US employment in this regard generate great expectations.

Technical levels

XAU/USD

Overview
Today last price 1702.47
Today Daily Change -8.59
Today Daily Change % -0.50
Today daily open 1711.06
trends
Daily SMA20 1763.12
Daily SMA50 1759.07
Daily SMA100 1813.2
Daily SMA200 1836.04
levels
Previous Daily High 1726.62
Previous Daily Low 1709.68
Previous Weekly High 1765.51
Previous Weekly Low 1727.87
Previous Monthly High 1807.93
Previous Monthly Low 1709.68
Daily Fibonacci 38.2% 1716.15
Daily Fibonacci 61.8% 1720.15
Daily Pivot Point S1 1704.95
Daily Pivot Point S2 1698.85
Daily Pivot Point S3 1688.01
Daily Pivot Point R1 1721.89
Daily Pivot Point R2 1732.73
Daily Pivot Point R3 1738.83

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Source: Fx Street

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