- Gold remains under pressure as Treasury yields advance.
- XAU / USD falls to the $ 1735 zone, down without much support to $ 1717.
After a slight rise on Monday, gold resumed downward paths and fell during the European session to $ 1,735.38 per ounce, the lowest level in a month. Price managed to hold above the $ 1735 area but after rebounding to $ 1745, it is approaching lows again.
The XAU / USD is weakened by the continued strength of the dollar and the rise in the yields of Treasury bonds. The 10-year benchmark rate is 1.49%, after reaching 1.50% on Monday for the first time since June. The fall in bonds is due to optimistic perspectives on the economic outlook and the expectations of tightening the monetary policy of the Federal Reserve.
In the zone of $ 1735 is the current support, where are the September lows. The break could trigger further lows, with the next strong support at $ 1720, and an intermediate one at $ 1727. A rally above $ 1750 could ease the current bearish tone in the near term.
Looking ahead to the next few hours, among the most relevant of the economic calendar will be the exhibitions of various members of the Federal Reserve (Bullard, Bowman and Bostic), in addition to the presentation of Powell together with the Secretary of the Treasury, Yellen, before a Senate committee.
On the data side, the July House Price Report, Consumer Confidence Data and the Richmond Fed Manufacturing Index will be released. The focor gold traders will continue on the bond market and what happens on Wall Street and with the dollar.