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Gold (XAU/USD) plunged below $1,700 on Thursday, as Treasury yields jumped after Chair Powell failed to provide a forceful pushback against the recent surge in yields. The yellow metal is set to fall towards the $1,660 region, according to strategists at TD Securities.

See –  Gold Price Analysis: Rising real yields raise the prospect of a serious XAU/USD fall – Credit Suisse

Key quotes

“Gold is looking for a bottom but is only likely to reach it when the US central bank acts to convincingly prevent rates from moving higher. After all, real rates will likely remain negative as the Fed attempts to engineer an inflation overshoot, and there is a growing risk that massive and growing public debt may be monetized.”

“XAU/USD can soon drop towards $1,660 amid a technical breakdown as trend followers add to their shorts. A stronger USD, and physical traders using gold to raise dollars in order to capitalize on higher yields, also helped to drive capital out of the metal.”