- Sharp fall in stock markets dragging metals.
- XAU / USD loses more than 1%, retreating from highs in months.
The The tone regarding gold changed dramatically in the last few hours. If it was testing the XAU / USD levels above $ 1840 it plummeted falling to $ 1817, the lowest level since Friday, amid a sharp decline in equity markets.
The main Wall Street indices opened the day with falls of more than 1%, while in Europe the markets with the highest volume lost an average of 2.5%. The deterioration in the mood of the markets pushed up the dollar, modestly and down on metals.
The dollar it was underperformed, except against emerging market currencies. Even as Treasuries fell, driving yields up, there was no such thing as the typical safe haven from stock market declines that should have spurred demand for Treasuries. The 10-year rate is at 1.62%, the highest level since May 3.
The technical picture for gold was damaged by the recent slide. Prior to this, it was testing $ 1840, which was the door for a bullish extension to $ 1850. Now gold is struggling to hold above $ 1,820 and is still under heavy pressure.
Silver also had an abrupt change in the short-term trend, which led it to erase the gains of the day by going from 27.50 to 27.07, in a few minutes.
Technical levels
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