- Gold extends losses, hitting four-day lows as market sentiment deteriorates.
- XAU / USD is back near critical medium-term support around $ 1,765.
The oro it fell further during the US session and bottomed at $ 1,769, the lowest level since last Friday. The metal erased weekly gains and was back below $ 1,780 as US yields continue to rise.
The 10-year US yield stands at 1,479%, a new one-year high. At the same time, Wall Street stocks turned negative. The Dow Jones fell 0.35% and the Nasdaq 1.20%.
Gold’s slide has been limited so far by a mixed US dollar. The dollar has fallen against the major European currencies and has risen against the yen. Better than expected US economic data did not help the dollar.
Tensions rise ahead of the critical level
Gold is back near $ 1,760 / $ 70 which capped the decline in November and early February. A consolidation below could open the doors for a bearish acceleration and a possible one towards $ 1,700.
If the XAU / USD manages to hold $ 1,770, it could rally and contain the weakness. On a daily close above $ 1,815, the downward pressure will ease significantly.