Gold’s Retreat Continues Amid Firmer US Treasury Yields and Positive Equities
GOLD prices (XAU/USD) commence the week on a subdued note, extending their pullback from the $2,004 region—a multi-day high triggered by disappointing US job data. A slight increase in US Treasury bond yields alleviates some of the downward pressure on the US Dollar (USD), exerting a counteractive force on the precious metal.
Moreover, the overall upbeat sentiment in equity markets further undermines the appeal of the safe-haven asset, dragging it below the $1,985 mark during the Asian trading session.
Nonetheless, the growing consensus that the Federal Reserve (Fed) will pause interest rate hikes in December should limit the Dollar’s upside, potentially providing a buffer for non-yielding Gold.
Additionally, geopolitical tensions, particularly the risk of heightened conflict in the Middle East, could offer some downside protection for XAU/USD. Investors are advised to seek substantial selling momentum before anticipating a significant corrective downturn from the year-to-date high recorded on October 27.
Gold Technical Analysis
GOLD prices exhibit a bearish inclination as the new trading day unfolds, aligning with the anticipated negative trend for the day, which aims to test the primary target at 1962.35. Stochastic indicators echo bearish sentiments, reinforcing the prospects of a continued downtrend.
A breach below 1983.55 could simplify the path towards the envisaged target, while a climb above 2000.00 would neutralize the bearish outlook and potentially reignite the dominant bullish trend.
The trading range forecasted for today spans from the 1965.00 support level to the 2000.00 resistance level.
Gold XAU Live Chart
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