- A sharp rally in US bond yields triggered new selling for gold on Thursday.
- Some tracking weakness below $ 1,780 will set the stage for further losses.
- A sustained move past a downtrend line resistance will negate any bearish bias.
The oro It was unable to capitalize on the good bounce the day before and witnessed some new selling on Thursday. The precious metal maintained its offered tone during the middle of the European session and was last seen hovering near the lower end of its daily trading range, just above the $ 1,785 level.
A new boost in US Treasury yields was seen as one of the key factors pushing the unprofitable metal out of the way. That said, the strongly offered tone around the US dollar extended some support to the dollar-denominated commodity and helped limit deeper losses, at least for now.
From a technical perspective, bearish traders are likely to wait for some subsequent selling below the support of the weekly lows near the $ 1,780 region before positioning for any further declines. XAU / USD could accelerate the decline towards annual lows, around the $ 1,760 zone last seen last Friday.
A subsequent decline will be seen as a new trigger for bearish traders and will make the precious metal vulnerable to prolong its recent downward trajectory. The next relevant target on the downside is pegged at the horizontal zone of $ 1,725-24 before the metal finally falls towards $ 1,700.
On the other hand, any significant recovery attempt is more likely to face immediate resistance near $ 1,800. This is closely followed by resistance marked by an eight-week descending trend line, around the $ 1,810-11 region and weekly swing highs, near the $ 1,815-16 bid zone.
A sustained move above will negate any short-term bearish bias and trigger some short-term short-term hedging move. The XAU / USD could then aim to break past the $ 1,825 intermediate hurdle and move higher to test the strong resistance at $ 1,845 en route to monthly lows around the $ 1,855 zone.
4 hour chart
Technical Levels
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