- The dollar rises throughout the market on Friday.
- XAUUSD accelerates to the downside and tests $1,750.
- Price looks vulnerable to the downside due to a combination of risk aversion and rising yields.
The Prayed is falling again on Friday and hit a three-week low at $1,749, affected by the stronger dollar backdrop across the market. Gold is on track to end the week sharply lower, snapping a run of four consecutive gains. The retracement, for now, is $50.
Combining sovereign bond yields higher and risk aversion is putting pressure on gold as well as other financial assets and emerging market currencies.
The dollar is favored on all fronts. DXY trades at 107.89, at a one-month high, showing a 0.35% gain. The US 10-year bond yields 2.93% and the 30-year bond yields 3.17%. Wall Street futures point to a negative open with losses of 0.80% on average.
The yellow metal is testing the $1750 zone, and looks vulnerable to further downside. The next support for XAUUSD can be seen at $1745, and the next one at the $1730 zone. In the opposite direction, now $1,770.
Technical levels
Source: Fx Street
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