- Renewed USD buying interest kept exerting some pressure on Friday.
- A fresh leg of an upsurge in the US bond yields added to the selling bias.
- The follow-through selling confirms the overnight bearish breakdown.
Having failed to capitalize on its early attempted bounce, Gold met with some fresh supply and dropped to near three-month lows in the last hour.
The precious metal added to its recent losses and continued losing ground on the last trading day of the week – marking its fourth day of a negative move in the previous five. Despite Thursday’s conflicting trade-related headlines, optimism over a partial US-China trade deal continued weighing on traditional safe-haven assets and kept exerting downward pressure on the precious metal.
Weighed down by a combination of factors
Apart from fading safe-haven demand, a fresh leg of an upsurge in the US Treasury bond yields further collaborated towards driving flows away from the non-yielding yellow metal. In fact, the yield on the benchmark 10-year US government bond climbed back closer to three-month tops set on Thursday and helped revive the US Dollar demand, which further undermined demand for the dollar-denominated commodity.
Friday’s downfall could further be attributed to some follow-through technical selling, especially after the overnight bearish break through the lower end of a one-month-old trading range. A subsequent weakness below October monthly swing lows, near the $1460 region, might have already set the stage for a further near-term depreciating move towards testing the $1440 support area.
Technical levels to watch
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