XAU / USD, affected by risk appetite, finds support below $ 1,770

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  • 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

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