- Gold extends the decline until it finds support at $1720.
- Rise in Treasury bond yields continues to put downward pressure on the yellow metal.
- With no impact data on Monday, the week’s report will be Friday’s US employment report.
Gold maintained weakness at the start of the week and fell to $1720, the lowest level in a month. From Friday’s high, the XAU/USD accumulates a drop greater than $30.
The downward pressure persists on gold, which also reaches silver by drag. The XAG/USD loses 1.28% on Monday, the lowest since July 27. The tone of weakness in metals remains intact.
Toco began after the speech of Jerome Powellthe president of the Federal Reserve on Friday. His hawkish tone pushed up Treasury yields, helped fuel expectations that sharp monetary tightening would continue, and also pushed stocks lower. All negative factors for XAUUSD.
The treasury bond yields They go up on Monday. The 2-year bond reached 3.48%, the highest level since 2007. The 10-year is testing the recent high of 3.13%.
On Monday the market will continue to digest the new situation. There will be no economic impact reports. The highlight of the week will be on Friday with the US employment data.
The XAUUSD is trading at $1726, trying to cut losses and recover the important zone of 1733$. If it loses $1,720, a new downward leg with a target of $1,712 would be expected. The next resistance is at $1705.
Technical levels
Source: Fx Street
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