- The dollar gains momentum before rising Treasury bond yields.
- DXY turns positive and rises 0.05%.
- XAU/USD drops to negative calf, look at $1840.
The Prayed it was unable to hold on to positive territory and after the opening of Wall Street it began to pull back recently reaching as low as $1845, the lowest level since Thursday. The combination of a rise in the dollar and Treasury bond yields put downward pressure on it.
After the start of the American session, US bond yields rose. The 10-year tranche has just surpassed 3.0% and the 30-year tranche is at 3.16%. Friday’s employment data alleviated fears of a possible recession and favor the expectation of a strong monetary tightening by the Federal Reserve. The dollar soared into positive territory against most of its rivals. At the same time, stocks on Wall Street rose.
Without impact data on Monday, the calendar for the next few days is light in the US until Friday when the inflation data will be published. Federal Reserve officials are in a quiet period ahead of the next FOMC meeting on June 15.
Weakness below $1850
Should it assert below $1,850, a test of the $1,840 area would be expected, and below last week’s low of $1,828. Below the next significant support is at $1815.
On the upside, gold would relieve the negative pressure to rise above $1860, which would pave the way for a test of $1870. This level is an important resistance that if it gives way, it would leave gold with a bullish tone.
Technical levels
Source: Fx Street
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