- Gold remains vulnerable, under $1,300/oz.
- Higher US yields continue to limit any recovery and remain supportive of the US Dollar.
Gold printed a fresh 2018 low earlier today at $1,285.10/oz and then bounced modestly to the upside. The recovery lost strength above $1,290 signaling that downside pressure still persists.
Higher US yields continue to affect gold prices. The 10-year reached 3.12%, a new multi-year high. The daily trends in yields still point higher, keeping any recovery limited.
Gold continues to move near the lows despite the rally in equity prices. During the last hour the DOW JONES rose more than a hundred pips in a few minutes, erasing daily losses while at the same time, XAU/USD remained muted.
On the downside, the area around $1,285/88 is the immediate support, a break lower could clear the way for a test of $1,280 and below the next support is seen at $1,275. On the upside, resistance levels might be seen at $1,295 followed by $1,305 and $1,310.