XAU / USD extends slide to one-week lows below $ 1,810

  • Metals remain under pressure from risk aversion and rising yields.
  • XAU / USD manages to return above $ 1,810.

The Gold continues to decline from highs in months and just fell to $ 1808, the lowest level in a week. It bounced from that level and is trading just below $ 1815. Despite moving away from the lows, the downward pressure on gold remains in place.

Silver also continues to decline. This occurs in a context of sharp decline in stock markets throughout the world. Risk aversion drives the dollar and affects assets like gold. In turn, the main negative factor for XAU / USD is the rise in Treasury yields. The 10-year rate is at 1.70%, where it arrived after the release of inflation data higher than expected in April in the US.

The Thursday will be the turn of the US wholesale inflation figures. that can continue to generate noise in the market. While metals are often used as a hedge against inflation, they are also influenced by what happens to real returns and the general climate in the market.

Regarding technical levels, the first support is the area of ​​$ 1810, a confirmation below would leave the way for $ 1800, around $ 1795 / $ 1800 there is an important barrier that if broken, would enable an extension of the correction . To the upside, at $ 1823 the first resistance appears and then $ 1830 will follow.

Technical levels

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