Gold came under strong bearish pressure in early American session. XAU/USD lost its bullish momentum before testing the critical 200-day SMA at $1850 and is set to test the $1800 as the yellow metal is now struggling with the $1820 support. FXStreet’s Eren Sengezer briefs.
See – Gold Price Analysis: XAU/USD bulls come out of the shadows to mull a test of $1850 – DBS Bank
Rising US Treasury bond yields and risk aversion weigh on gold
“The benchmark 10-year US Treasury bond yield, which has been showing a strong inverse correlation with gold prices lately, is up more than 1% in the early American session.”
“Currently, gold is trading near $1,820 (Fibonacci 50% retracement of the January-March downtrend) and additional losses could be witnessed if the next four-hour candle opens below that level. The next significant support is located at $1,800 (psychological level, 100-day SMA).”
“On the upside, key resistance remains at $1,850 (Fibonacci 61.8% retracement level, 200-day SMA). Only a daily close above that level could open the door for another leg higher. The next hurdle could be seen at $1,860 (static level).”
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