Can a Breakout of $1,825 Support Drive a Sell-off in Gold?

Gold rose on Thursday as US Treasury yields fell, but it continues to face its worst quarter since early 2021, as the dollar solidified its position as the preferred safe-haven asset, with top central banks adopting aggressive anti-inflationary measures.

GOLD futures in the United States rose 0.1 percent to $1,819.70. Benchmark 10-year Treasury yields in the United States have fallen, making non-yielding gold more appealing. The dollar has risen to two-decade highs and is on track to have its best quarter in over five years, trying to make gold less appealing to buyers holding other currencies.

Gold prices are set to fall for the third month in a row, falling about 6% this quarter, the most since the first quarter of 2021. Lowering global inflation will be painful and may stall growth, but it must be done quickly to prevent swift price growth from being engrained, the world’s top central bankers said on Wednesday.

Central banks raising interest rates to combat inflation lift the opportunity cost of holding bullion, which pays no interest. Given red-hot inflation, sharp rate hikes, and slowing growth in China, World Bank Chief Economist Carmen Reinhart is skeptical that the US and global economies can avoid a recession.

Spot silver was unchanged at $20.71 per ounce, while platinum rose 0.3 percent to $919.68 and palladium rose 0.8 percent to $1,977.09. They were all, however, on track for monthly and quarterly losses.

Gold Technical Outlook

Gold price continues its negative trading to reach the first anticipated target of $1,810.00, with a further decline to $1,780.25 as the next main target, with the EMA 50 continuing to support the suggested bearish wave will remain valid if the price remains below $1,850.00.

Today’s trading range is expected to be between $1,800 support and $1,835 resistance. Good luck!