- The dollar is holding on to major gains on Monday.
- Equity markets fall significantly.
- XAU/USD has a short-lived bounce, still looking at March low.
The Prayed is validating significant losses on Monday, weakened by a dollar rally and a major decline in equity markets. The precious metal is testing March lows.
The price bottomed out at $1,891, the lowest since March 29, and then bounced back but failed to return above $2,000. It is trading around $1895 with an eye towards the $1890 support area where the March lows are. If affirmed below, more casualties would be expected.
Thus, XAU/USD accelerates the pullback that started last week from levels near $2000. The change in speed is due to a rally in the dollar due to risk aversion. Stock markets in Europe fell 1.50% on average, and on Wall Street the S&P 500 lost 0.52% and the Nasdaq rose 0.47%.
Treasuries rise significantly on refugee seeking. The 10-year rate is at 2.7%, the 20-year rate reached 2.86%, both reaching minimums in days. The decline in yields has failed to favor gold, which is typically negatively correlated.
Technical levels
Source: Fx Street
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