- Spot gold was on the defensive Tuesday, weighed down by the strong US dollar and losses in silver.
- For now, the precious metal has bounced off the bottom of its recent range of $ 1,830 to $ 1,870.
El oro (XAU / USD) has been under pressure on Tuesday, going from Asia Pacific levels comfortably above $ 1,850 to fresh two-week lows below $ 1,830. Currently, the precious metal is trading closer to $ 1,840, losing about $ 20 on the day or about 1.2%.
Driving the day
The strength of the USD is the main factor weighing on the gold markets on Tuesday; the dollar index rebounded above 91.00 and hit new two-month highs. No specific factor has stimulated the USD rally; Risk appetite is very strong Tuesday with strong gains in stocks and crude oil markets (generally negative for the safe-haven US dollar). The strength of the USD is attributed to a combination of position adjustment (profit shorts) and weakness elsewhere (such as EUR, GBP and silver).
Gold is also sympathetic to a pullback in silver markets, as the recent surge in retail investor demand for the silver metal wanes following increases in future margin requirements for silver on the Mercantile Exchange of Chicago (CME), a move analysts say it is designed to take. part of the market foam. Note that the CME also increased the margin requirements for gold.
Signals from the bond market continue to broadly support the complex; US short-term real yields fell to new record lows on Tuesday, with 5-year TIPS yields falling below -1.83% and 10-year TIPS yield remaining relatively close to record lows and little moved on. the day. below -1.0%. Meanwhile, inflation expectations remain high (the 5-year breakeven points are at 2.2122% and the 10-year breakeven points are 2.1207%).
XAU / USD testing the bottom of its recent range
XAU / USD is testing the bottom of its range for the past two weeks; During this period, price action has mostly been limited to between $ 1,830 and $ 1,870. A break below the bottom of this range, which thus far remains elusive and would likely require a further recovery of the strength of the US dollar, would open the door to a test of the January low just above the $ 1,800 level.
Four hour chart
Technical Levels
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