- Summary:
- Gold price (XAU/USD) resumes the downward move after US bond yields suddenly make a reversal to the upside, increasing dollar demand.
Gold price on the XAU/USD chart has shed off all its earlier gains on the day after a rebound in US bond yields in the New York session. Consequently, gold price is now down 0.16%, hitting intraday lows of 1719.06. The decline comes on the back of a resurgence of US bond yields, with the US Treasuries 10-year bond yield also recovering from initial losses on the day to post a 0.69% advance.
This move has allowed the greenback to recover some demand, thus putting the yellow metal under pressure once more.
Technical Levels to Watch
The initial rejection occurred at the 1741.01 resistance level, allowing bears to send gold price back towards the 1719.13 support level. These two price levels are the ceiling and floor of the price move for the day. A further decline that clears 1719.13 opens the door for the price to tank towards 1699.43. Lows of 8 June 2020 and 5 March 2021 present an additional support level at 1680.59, below which the channel’s return line faces the risk of a breakdown. 1638.49 and 1600.70 become available if the breakdown occurs.
On the flip side, an advance in gold prices depends on bulls uncapping the 1741.01 resistance, which exposes 1763.30 to challenge. If that price level is taken out by advancing prices, 1789.49 and 1815.20 (23 February 2021 high) become available once more.
Gold Price (XAU/USD) Daily Chart
