- A reversal in US yields sent metals down sharply.
- The XAU / USD erased daily gains, weakening the recovery.
Gold prices fell more than $ 20 from the daily high and bottomed at 1.719$ during the American session. The drop came as US yields bounced higher. The XAU / USD rally is being questioned.
After the European Central Bank meeting, after Lagarde’s press conference, and before the results of the 30-year bond auction, US yields turned upward. 10-year bonds rose from a week low of 1,475% to 1,546%. The move offered some support to the dollar, which cut losses only modestly.
The dollar remains under pressure amid appetite for risk. The Dow Jones is rising 0.84%, at all-time highs, while the Nasdaq is up 1.99%. The improvement in market sentiment is not helping the demand for gold and silver.
XAU Recovery Under Pressure
Earlier on Thursday, the XAU / USD peaked at $ 1,740, a weekly high before turning lower. The price is testing the $ 1,720 support area and a firm breakout would expose the next support around $ 1,708 that protects the $ 1,700 area. On the upside, now $ 1,731 is the level that gold must regain to regain initiative and recovery momentum.
It is unclear if the current move is a correction from the current recovery from $ 1,676 (March 9 low) or if the end of the correction of the medium-term bearish move is more likely.
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.
