- A stronger US dollar and higher US yields favored a reversal in gold.
- The ounce dropped to test daily lows.
During the US session and following the retail sales report gold jumped to $1297/oz but then pulled back falling almost $10 from the top on the back of a stronger US dollar and amid higher US yields.
Price approached last week lows and as of writing was trading at $1287, slightly above day’s low. The yellow metal continues to be unable to move off the $1285 area. On Friday and also today, failed to rise back above $1300.
Gold remains under pressure. Last week drop was significantly and changed the short-term tone. A firm break under $1286 (last week low) would expose $1280 (March low) and below $1276.
Today’s reversal took place even amid a rally in Wall Street and in crude oil prices. The Dow Jones is up by almost 300 points or 1.15% while the WTI gains 2.40%. US yields rose sharply weakening XAU/USD. The 10-year close on Friday near 2.40% and it was trading close to 2.50%, at the highest since March 22.
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