- Gold, rejected from $ 1,800, fell back below $ 1,770.
- Risk appetite and higher US bonds have hurt gold futures.
- XAU / USD bearish momentum could rise below $ 1,745.
Gold futures they fell sharply on Friday, affected by a combination of factors that have fueled risk appetite. The yellow metal has depreciated more than $ 30 after breaking above $ 1,800 on Thursday, to find support just below $ 1,770 during the afternoon trading session in the US.
Upbeat data and a rebound in US yields have weighed on gold
Bullion gave away Thursday’s gains amid a rebound in risk and a rally in US Treasury yields, which has taken a toll on the safe-haven metal’s appeal. Upbeat quarterly financials results, with Goldman Sachs reporting a 66% rise in third-quarter earnings to wrap up a series of better-than-expected readings on other major banks earlier this week, has fueled optimism among investors. investors and eased fears about inflation, pressure and supply chain disruptions.
On the other hand, long-term U.S. Treasury yields have rebounded, with the 10-year yield, which had fallen from a high of 1.61% on Monday to 1.51% on Thursday, has recovered to 1.55. % on Friday, holding back the appeal for gold even more.
The macroeconomic calendar has not been particularly helpful to gold buyers either. US retail sales rose 0.7% in September, according to data released by the Commerce Department on Friday, beating market expectations of a 0.4% increase, albeit partly due to higher prices, primarily at auto dealers struggling with a global shortage. of computer chips.
XAU / USD: 1.745 support gap could accelerate decline
From a technical perspective, XAU / USD appears to have found buyers in a $ 1,770 area to take a breather after a 1.8% reversal. Down here, the next potential support area is at $ 1,745 (Oct 6 low), which would pave the way to a key support area at $ 1,725 (Sept 29-30 low).
On the upside, resistance levels remain at $ 1,807 (September 15 high) before $ 1,830, the July-September peak. If that level is exceeded, the next potential target could be the June 8-11 highs at $ 1,905.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
