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XAU / USD extends crash below $ 1800 and marks lows near $ 1770

  • Metals are still in free fall, gold loses almost 2% on Thursday.
  • XAU / USD continues to plummet below $ 1800 now, losing over $ 100 in a week.

The free fall of gold continues with momentum and on Thursday it lost almost 2%, after losing $ 48 an ounce on Wednesday. XAU / USD just dropped to $ 1775, the new low since early May. In this way, the precious metal has lost more than a hundred dollars in a week.

This time the factor behind the fall in the last hour is the rise in the yields of Treasury bonds, which after a slight correction, resumed the increases. The 10-year rate is at 1.56%, still far from the recent peak of 1.59%.

The dollar remains strong holding on to recent gains that accelerated after the Federal Reserve meeting. The central bank’s signaling of the possibility of an interest rate hike earlier than previously anticipated (judging by the projections of FOMC officials), strengthened the dollar on all fronts and left metals vulnerable .

The report of initial requests for unemployment benefits from the US showed a higher than expected rise to 412,000 against the expected 359,000, but this had no impact on the market.

In case of extending the fall, the next gold support is located in the area of ​​$ 1765/70. To the upside, $ 1800 is the most immediate resistance.

Technical levels

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