- Gold loses strength on resurgence of Treasuries.
- Equity markets moderate the advance.
- The dollar remains in negative territory throughout the market.
The Prayed erased previous gains and turned negative for the day during the American session, signaling that the rally has run out of steam. The price of an ounce had climbed to $1,836, the highest since Wednesday. It then reversed direction and recently fell to $1,819, marking a low for the day.
The XAU/USD is trading just above $1820 trying to regain momentum. Should it return above $1830, the very short-term bullish picture would be reinforced, and a test of daily highs and beyond would be expected. Instead of asserting below $1,820, the next support is at $1,815, followed by $1,805.
Gold’s loss of strength came on the back of a resurgence in rising Treasury yields. After remaining range bound, the 10-year tranche jumped from 2.90% to 2.97%, weakening gold. To this was added the moderation in the rise in the equity markets. Wall Street indices are up but off highs.
Better-than-expected US economic data for both retail sales and industrial production helped stem the dollar’s decline and weaken Treasuries.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
