Gold prices closed at $1805.40 after hitting a high of $1807.95 and a low of $1789.20. GOLD extended its loss and fell for the third consecutive session to reach its five-day low, owing primarily to rising US Treasury yields. Treasury yields on the benchmark 10-year note in the United States rose dramatically on Wednesday, reaching their highest level since November 19 at 1.56%. Rising bond yields increased the opportunity cost of non-interest-bearing gold, dragging precious metals down. However, the US Dollar Index, which measures the greenback’s value against a basket of six major currencies, dropped on Wednesday to 95.93 levels and kept losses in gold limited on Wednesday.

Gold Rate Live

The US dollar was declining on Wednesday amid the release of unfavorable macroeconomic data and the prevailing risk appetite in the market. The dollar was getting stronger in the market on the back of its safe-haven status lately, but market participants turned towards riskier currencies after optimism returned to the market. 

According to the Director of the Centers for Disease Control and Prevention, Rochelle Walensky, the COVID-19 deaths and hospitalizations were comparatively low despite the number of cases reaching record highs amid the spread of the Omicron variant. She said the rapid spread of the Omicron variant had increased the instances substantially, but hospitalizations and deaths remain comparatively low, which suggests less severity of the Omicron variant than the Delta variant. 

After these comments, market participants started moving towards riskier assets, and safe-haven currencies like the dollar came under pressure. Furthermore, the safe-haven asset, gold, also dropped amid the emerging risk appetite in the market.

On the data front, at 18:30 GMT, the Goods Trade Balance dropped to -97.8 billion against the forecast -89.0 billion and weighed on the US dollar. The prelim wholesale inventories fell to 1.2% against the expected 1.5% and supported the US dollar. At 20:00 GMT, the Pending Home Sales dropped to-2.2% against the forecast 0.6% and weighed on the US dollar. Most of the data released from the US was not in favor of the dollar, and hence, the greenback remained under pressure.

Daily Technical Levels

Support Resistance

1793.75 1812.50

1782.10 1819.60

1775.00 1831.25

Pivot Point: 1800.85

Gold Technical Outlook – Upward Trendline Supports at $1801

Gold is trading with a bearish bias at 1,800 level, having reversed lower after testing the strong resistance at 1,806 level. A bullish crossover above 1,806 levels exposes the metal towards 1,818. The precious metals are likely to exhibit thin trading volume and volatility amid holiday sessions. On the lower side, support stays at 1,789, and a break below 1,789 can lead XAU/USD to 1,785 and 1,779 levels. Consider looking for a sell trade below 1,806. Good luck!