Gold suffered significant declines in late February and early March as US Treasury yields grinded higher. Losses saw XAU/USD blow through various levels of technical support until the lower bound of the metal’s descending channel helped to arrest declines around the $1,675 mark. A picture-perfect bounce off the trendline has seen gold recover somewhat – although the comeback has slowed – and further gains might be difficult to establish if US Treasury yields rise further.
Should the recovery rally gain steam once more, initial resistance might reside along the November low around $1,765 with a potential barrier shortly thereafter around $1,800. A move to the $1,800 level would see the commodity reclaim the midpoint of the descending channel that began in August. Nevertheless, the longer-term outlook remains dire for the yellow metal as months of declines show little signs of reversing without changes in the underlying fundamental landscape.
With that in mind, traders should continue to monitor the US 10-year Treasury yield as rising yields have been a source of weakness for gold. Should yields climb further as the Fed concludes its temporary changes to the Supplementary Leverage Ratio (SLR) rule, gold might enter another stage of weakness and seek support. A break beneath the descending trendline and or the March low could allow losses to accelerate. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.
–Written by Peter Hanks, Strategist for DailyFX.com
Contact and follow Peter on Twitter @PeterHanksFX
This content was originally published here.
New Delhi: Gold has fallen from its August 2020 high of Rs 56,200 per 10 grams to Rs 11,500, as investors are moving…
Sandstorm Gold (TSE:SSL) had its price target hoisted by equities research analysts at National Bankshares from C$13.00…
Gold Price Outlook:Gold Price Drops as Treasury Yields Rise, Will XAU/USD Fall Further?After encountering resistance…
Share Great Content for Our Resource Section
MoneyForGold.com is a resource site created for those looking to sell their personal collection of gold - whether it’s jewelry, coins, bars, antiques, etc., anything made from gold can be sold for quick cash. We encourage visitors to signup and share quality “Money For Gold” resources.
Have a question or comment? Email us at: email@example.com